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Timco Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $136,000, and have an estimated useful life of 5 years. It will be sold for $70,000 at that time. (Amusement parks need to rotate exhibits to keep people interested) It is expected to increase net annual cash flows by $25,000. The company's borrowing rate is 8%. Its cost of capital s 10%. Calculate the net present value of this project to the company?

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Accounting Basics, Accounting

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