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Brown Ambulance Service can purchase a new ambulance for $330,000 that will provide an annual net cash flow of $55,000 per year for 8 years. Calculate the NPV of the ambulance if the discount rate is 6.9%. Assume that the ambulance is sold for a salvage value of $1,900 in the final year. Calculate the new NPV of the ambulance.

Financial Management, Finance

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