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15. SAT-Corp. is considering the purchase of a new piece of machinery that will cost them $1,800,695 today (in 2010 ). This piece of machinery,
15. SAT-Corp. is considering the purchase of a new piece of machinery that will cost them $1,800,695 today (in 2010 ). This piece of machinery, however, will increase the company's after-tax cash flows by $500,000 in 2011 , $750,000 in 2012,$1,000,000 in 2013 . If SAT-Corp.'s discount rate (WACC) is 10%, then the NPV of making this purchase is a. $449,305 b. $243,896 c. $25,000 d. $1,760,000
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