23. The cost of a particular machine is $110,000. It has a useful life of 7 years. It saves us $15,000 annually in labor costs. We estimate a salvage value of $8,000. Our cost of capital (discount rate) is 8%. Based on these facts, use your BA II Plus calculator to calculate the machines NPV (Net Present Value). On this problem, use ANNUAL COMPOUNDING (Thus, set your P/Y = 1). Round only your answer (the NPV of the machine) to the nearest dollar amount. Do not round any other amount in the problem.

		A. $(27,237) - a negative number
		B. $(2,620) a negative number
		C. $2,620
		D. $82,763
		E. $96,110
		$112,620

24. A corporation borrows $1,000,000 at a 10% ANNUAL rate of interest. The firm has a 40 percent marginal tax rate. What is the true yearly, AFTER-TAX cost of this debt (rounded to the nearest $1 if necessary)?

		A. Zero (because interest expense is deductible)
		B. $40,000
		C. $60,000
		D. $100,000
		E. $166,667