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Ilana Industries Incorporated needs a new lathe. It can buy a new high - speed lathe for $ 2 . 0 million. The lathe will
Ilana Industries Incorporated needs a new lathe. It can buy a new highspeed lathe for $ million. The lathe will cost $ per year to run, but it will save the firm $ in labor costs and will be useful for years. Suppose that, for tax purposes, the lathe is entitled to bonus depreciation. At the end of the years, the lathe can be sold for $ The discount rate is and the corporate tax rate is What is the NPV of buying the new lathe?
Note: A negative amount should be indicated by a minus sign. Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to decimal places.
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