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10.1 c. 50.2 di 50.6 e. $0.4 UC Rugby Ltd. is looking at rugby ball machine with an installed cost of $20,000. The expected hie

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10.1 c. 50.2 di 50.6 e. $0.4 UC Rugby Ltd. is looking at rugby ball machine with an installed cost of $20,000. The expected hie of the machine is two years and it ean be scrapped for $5,000. This machine will savo the team $10,000 per year in pre-tax operatirg costs. Assume that the initial seevired net working capital is $3,000 (which will be returns at the end of two years), tax rate is 28%, and the appropriate discount rate is to\% Use straight-ine depreciation method, Calculate NPV of this project. a. $30 b. $470 c. $320 d. $190 Q. $230

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