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Question 19 1 pts XYZ corp. is considering investing in a new machine. The new machine cost will $ 9,000 installed. Depreciation expense on the
Question 19 1 pts XYZ corp. is considering investing in a new machine. The new machine cost will $ 9,000 installed. Depreciation expense on the new machine will be $ 1,000 per year for the next five years. At the end of the fifth year XYZ expects to sell the machine for $5000. XYZ will also sell its old machine today that has a book value of $3000 for $3000. The old machine has depreciation expense of $600 per year and zero salvage value. Additionally, XYZ Corp expects that the new machine will increase its EBIT by $3500 in each of the next five years. Assuming that XYZ's marginal tax rate is 21% and the project's cost of capital is 10%, What is the projects NPV? Round your final answer to two decimals
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