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Crescent Industries management is planning to replace some existing machinery in its plant. The cost of...

Crescent Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. If the firm uses an 18 percent discount rate for projects like this. Year Cash Flow 0 -$3,068,400 1 $800,810 2 $1,001,200 3 $1,085,000 4 $1,333,860 5 $1,540,400 What is the NPV of this project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)

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Answer: Year Cash Inflow 800810 1001200 1085000 1333860 1540400 PV Factor 0.8475 0.7182 0.6086 0.5158 0.4371 PV of Cash Flow

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