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Mahoney, Inc. is considering the purchase of a new air-handling system that will have no effect on revenues but will save $50,000 in energy costs
Mahoney, Inc. is considering the purchase of a new air-handling system that will have no effect on revenues but will save $50,000 in energy costs each year it is used. The system costs $120,000 and will be depreciated on a straight-line basis to $0 over 4 years. The system can be sold after six years for $25,000. If the Tax Rate is 20% and the opportunity cost of capital is 9%, what is the projects Net Present Value (rounded to the nearest dollar)?
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-None of the above
-$77,158
-$90,800 -
$82,100
-$89,757
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