Question: Tarjee Florist is considering replacing an old refrigeration unit with a larger unit to store flowers. Because the new refrigeration unit has a larger capacity,

Tarjee Florist is considering replacing an old refrigeration unit with a larger unit to store flowers. Because the new refrigeration unit has a larger capacity, Tarjee estimates that it can sell an additional $9,000 of flowers a year. (The cost of the flowers is $5,300). In addition, the new unit is energy efficient and should save $2,332 in electricity each year. It will cost an extra $3,710 per year for maintenance. The new refrigeration unit costs $26,500 and has an expected life of 10 years. The old unit is fully depreciated and can be sold for an amount equal to disposal cost. At the end of 10 years, the new unit has an expected residual value of $5,194.
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Determine the net present value of the investment if the required rate of return is 13 percent. (Ignore taxes.)(Round present value factor calculations to 4 decimal places, eg.1.2151 and final answer to 0 decimal places, e.g.125. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g.(45).)
The net present value
$
Should the investment be undertaken?
The investment be undertaken.
Tarjee Florist is considering replacing an old

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