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You are investing in new variable speed pumps that will cost €75,000. The savings should be...

You are investing in new variable speed pumps that will cost €75,000. The savings should be €20,000 per year. Assuming there is no salvage value, using straight line depreciation over 5 years, a tax rate of 22%, and a minimum attractive rate of return of 30%. What is the after-tax NPV of the project?

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Answer #1

Year CF 0 $(75,000.00) 1 Year CF 1 $18,900.00 A В I-75000 (20000*78%)+((75000/5)22% = (20000 78%)+(75000/5)22%) (20000 78%

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