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Mester Corporation has provided the following information concerning a capital budgeting project After-tax discount rate Tax rate Expected life of the project Investment required

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Mester Corporation has provided the following information concerning a capital budgeting project After-tax discount rate Tax rate Expected life of the project Investment required in equipment Salvage value of equipment Annual sales Annual cash operating expenses One-time renovation expense in year 3 14% 30% $ 72,000 $ 0 $ 170,000 $ 120,000 $ 20,000 Click here to view Exhibit 7B-1 to determine the appropriate discount factor(s) using tables. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the en taxes into account in its capital budgeting. The net present value of the project is closest to: Note: Round intermediate calculations and final answer to the nearest dollar amount.

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To calculate the net present value NPV of the project we need to determine the cash flows for each year and discount them back to their present value ... blur-text-image

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