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A new machine for Volusia Shipyards will cost $ 2 4 2 , 0 0 0 ( including shipping and installation ) and have an
A new machine for Volusia Shipyards will cost $including shipping and installation and have an estimated life of years, though you only need the machine for an estimated years, at which point Volusia can sell the machine for $ The new machine will allow additional sales of units per year at $ sales price per unit today with costs of $ per unit today These amounts will increase by an expected inflation rate, annually. The new machine will be depreciated over the year MACRS recovery period. Use the slightly simplified depreciation rates of for year for year for year and the remainder for year This project will require increased NWC of of the following year's projected sales eg increase NWC today would be of year s sales NWC increases may be 'recovered' at the end of the project. The applicable corporate tax rate is and the project cost of capital is What is the NPV of Volusia acquiring the new machine? Should they do so
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