Question 1 10 points Save Answer We believe we can sell 450,000 home security devices per year at $93 per piece. They cost $74 to manufacture (variable cost). Fixed production costs run $215,000 per year. The necessary equipment costs $785,000 to buy and would be depreciated at a 25% CCA rate. The equipment would have a zero salvage value after the five-year life of the project. We need to invest $140,000 in net working capital up front; no additional net working capital investment is necessary. The discount rate is 19%, and the tax rate is 35%. What is the NPV of the project? (Do not round your intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)
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