Question
Please help solve in a excel document. JJ Enterprises is considering the purchase of a new machine that will produce thumb drives.The new machine will
Please help solve in a excel document.
JJ Enterprises is considering the purchase of a new machine that will produce thumb drives.The new machine will require an initial investment of $800,000 and has an economic life of five years and will be fully depreciated by the straight line method.The machine will produce 150,000 thumb drives per year with each costing $0.10 to make.Each will be sold at $2.00.Assume JJ Enterprises uses a discount rate of 14 percent and has a tax rate of 34 percent. What is the NPV of the project and should JJ Enterprises make the purchase.
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