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If Caleb decides to replace the HP462 Copy Machine can be sold today by $10,000. The new HP777 will cost the firm $100,000. The new
If Caleb decides to replace the HP462 Copy Machine can be sold today by $10,000. The new HP777 will cost the firm $100,000. The new HP777 will increase revenues $40,000 per year for 3 years but also will increase cost by $5,000 per year for 3 years. The new HP777 will be depreciated (MACRS) for 3 years. At the end of 3 years the PF777 will be sold for $20,000 and the firm's tax rate is 35%. The initial investment outlay to purchasing the HP777 copy machine is closest to: A- -$90,000 B- -$86,500 C- -$123,000
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