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Q2. A) Project ABC will bring the company annual revenue $200, total variable costs $50, total fixed costs $20. It requires $1000 to buy a
Q2. A) Project ABC will bring the company annual revenue $200, total variable costs $50, total fixed costs $20. It requires $1000 to buy a machine at the beginning. It will be depreciated to zero according to straight-line depreciation and it can be sold at $100 at the end of this project. The economy life is 10 years. Tax rate is 30%. What is the NPV of this project if discount rate is 10%
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