Partida inc has provided the following data concerning a, Ask an Expert

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Partida Inc. has provided the following data concerning a proposed investment project:

Initial investment	$861,000
Annual cash receipts	$603,000
Life of the project	5 years
Annual cash expenses	$332,000
Salvage value	$129,000

The company's tax rate is 30%. For tax purposes, the entire initial investment without any reduction for salvage value will be depreciated over 3 years. The company uses a discount rate of 11%.

Required:

Compute the net present value of the project.

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