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25 Stamps Unlimited is considering a new printing machine. The machine costs $156,000. The new machine can be used to generate $39,000 in annual revenue.
25 Stamps Unlimited is considering a new printing machine. The machine costs $156,000. The new machine can be used to generate $39,000 in annual revenue. Cash operation expenses are estimated to be $12,000 per year. The machine has a useful life of 8 years and annual depreciation expense would be $18,250. The machine has an approximate salvage value of $10,000 at the end of its useful life. The company has a 13% minimum rate of return. The present value of the salvage value for the machine is: $3,760$10,000$47,990$18,250
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