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QUESTION 22 Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment. Assume the new machine

QUESTION 22 Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment. Assume the new machine will generate after-tax savings of $250,000 per year over the next four years. If Gamma Electronics has a 15% cost of capital, what's the NPV of the investment? A. $213,745 B. $185,865 C. $713,745 D. $500,000

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