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Question 28 Original Score: 0 / 3 pts Regraded Score: 3 / 3 pts This question has been regraded. Concluding the Ninja Rangers problem, now
Question 28 Original Score: 0 / 3 pts Regraded Score: 3 / 3 pts This question has been regraded. Concluding the Ninja Rangers problem, now consider the gain or loss on the sale of the X-1600 Red compactor. Assuming that 5 years of useful life remain on the machine, would the inclusion of the amount of gain or loss change the decision made in the question above? (This is a "throw back question" and requires that you remember how to calculate the gain or loss of the sale of a machine) This Problem Counts 3 points O Does Not Change the Decision, an After Tax Loss on Sale results in positive cash flow $47,250, increasing the NPV of the Blue Option O Does Not Change the Decision, an After Tax Loss on Sale Results in negative cash flow of $47,250 but still leaves an overall positive NPV of Buying Blue O Changes the Decision to Buy Blue to Keeping the Red, NPV of the Buy Blue option becomes -$152,611Changes the Decision to Buy Blue to Keeping the Blue, NPV of the Buy Blue option becomes -$105,361 Question Thrown Out. Students Who Originally Got Correct will Get 3 Point Extra Credit
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