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Preston Corporation is evaluating its potential investment in a $240,000 piece of equipment with a three-year life and no salvage value. The company's hurdle rate is 10 percent and it anticipates that pre-tax cash flows in each of the three years will equal 20%, 40%, and 60%, respectively, of the investment's face value. The tax rate is 30%. Discounted pre-tax cash flows are $429,953, undiscounted after-tax cash flows are $273,600, and discounted after-tax cash flows are $221,414. The net present value of the investment is:
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