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Bruin Store is considering the purchase of a new $1,000 high-tech photo booth. This photo-booth has an economic life of 3 years and will be
Bruin Store is considering the purchase of a new $1,000 high-tech photo booth. This photo-booth has an economic life of 3 years and will be fully depreciated by the straight-line method. The equipment will take 10,000 photos per year, with each costing $0.50 and priced at $1.25. The machine will be used for 3 years and then will be worthless. Assume that the discount rate is 9.0% and the tax rate is 35%. What is the N PV of this equipment? 12738.54 11635.39 10592.10 13635.39 12635.39
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