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Consider a $50,000 machine that will reduce pretax operating costs by $15,000 per year over a 5year period. Assume no changes in net working capital

Consider a $50,000 machine that will reduce pretax operating costs by $15,000 per year over a 5year period. Assume no changes in net working capital and a salvage value of zero. Further assume straight-line depreciation to zero, a marginal tax rate of 35%, and a required return of 10%. The project NPV is: a. $ 228 b. $ 549 c. $1,462 d. $2,313 e. None of the above. Correct answer ______________.

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