Question
A machine costs $500 and depreciates to zero over 20 yrs. If you buy the machine, the project will produce $100 in net sales at
A machine costs $500 and depreciates to zero over 20 yrs. If you buy the machine, the project will produce $100 in net sales at the end of the first year. Net sales will grow by 6% each subsequent year. The project will end after 20 years at which point the machine will have zero market value. There is no NWC required. Tax is 35% and annual rate is 7%. What is NPV?
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Information Quality Assurance And Internal Control For Management Decision Making
Authors: William R Kinney
1st Edition
0256221618, 9780256221619
