RWJ 7th Edition Solutions
The required pretax cost savings that would make us indifferent about the project is the cost savings that results in a zero NPV. The NPV of the project is: The NPV of the project is: NPV = 0 = – $925,000 + $125,000 + OCF(PVIFA20%,5) + [($58,500 – 125,000) / (1.20)5] ................
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