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6 Question 6 1 pts You are a financial analyst in charge of capital budgeting for Nine Point Industries. You are evaluating a new machine
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Question 6 1 pts You are a financial analyst in charge of capital budgeting for Nine Point Industries. You are evaluating a new machine with a purchase price of $260,000, and installation costs would amount to $10,000. An additional $10,000 in net working capital would be required at installation. The machine has a class life of 2 years. The machine would save the firm $225,000 per year in operating costs. The firm is planning to keep the machine in place for 1 year, At the end of the first year, the firm plans to sell the machine for $80,000. The firm has a required rate of return on investment projects of 10% and a marginal tax rate of 21%. What is the NPV of the project? $169,627 $138,190 negative $26,091 O negative $318 O $104,705 Step by Step Solution
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