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Intro Better Tires Corp. is planning to buy a new tire making machine for $50,000 that would save it $70,000 per year in production costs.
Intro Better Tires Corp. is planning to buy a new tire making machine for $50,000 that would save it $70,000 per year in production costs. The savings would be constant over the project's 3 -year life. The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The appropriate cost of capital for this project is 14% and the tax rate is 21%. Part 1 B Attempt 1/5 for 10pts. What is the free cash flow in each year of operation (years 1 to 3 )? Part 2 What is the NPV of this project
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