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Kinky Copies may buy a high-volume copier. The machine costs $30,000 and this cost can be fully depreciated immediately. Kinky anticipates that the machine
Kinky Copies may buy a high-volume copier. The machine costs $30,000 and this cost can be fully depreciated immediately. Kinky anticipates that the machine actually can be sold in 5 years for $12,000. The machine will save $26,000 a year in labor costs as an after-tax reduction, but will require an increase in working capital, mainly paper supplies, of $2.500. The firm's marginal tax rate is 21%, and the discount rate is 10% (Assume the net working capital will be recovered at the end of Year 5) What is the NPV of this project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV
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