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You Are Considering Investing $600,000 in a New Automated Inventory

question 31

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You are considering investing $600,000 in a new automated inventory system that will provide after-tax cost savings of $50,000 next year.These cost savings are expected to grow at the same rate as sales.If sales are expected to grow at 5% per year and your cost of capital is 10%,then what is the NPV of the automated inventory system?

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Definitions:

Ethical Philosophy

Ethical philosophy explores the fundamental questions of right and wrong, virtue and vice, and moral responsibility.

Ethical Codes

Formalized sets of ethical guidelines developed by some companies for use at all levels of an organization.

Formalized Sets

Established or official groups or collections of objects, rules, or standards that are systematically organized.

Guidelines

Recommended principles or practices that serve as a framework or advice for conduct or action.

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