Question: SnapDog Inc. is considering buying a nee server system with an initial cost of $4 million. The server system sull have zero salavge value at
SnapDog Inc. is considering buying a nee server system with an initial cost of $4 million. The server system sull have zero salavge value at the end of its 6 year life. the project will increase after tax operating Cash Flows (OCF's) (including appropriate depreciation) to the firm by $1,250,000 a year as shown. If the firm requires a 14% rate of return what is the Net Present Value of this project?
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