A company purchased a new machine. The cost of the new machine was $250.000 and it has an estimated useful life of 5 years with an expected salvage value at the end of its useful life of $50,000. The company uses the straight line depreciation method. The new machine is expected to save $125.000 annually in operating costs. The company's tax rate is 40% and it uses a 10% discount rate to evaluate capital expenditures. What is the NPV of the new machine? Select one a $200,000 0 b. $126,031 C. $376,031 d. $250.000 Previous page Next page