Should Alpha Company Purchase a New Piece of Equipment? Alpha Company, a manufacturer of light industrial equipment is considering investing in a new laser cutting machine. The new cutter costs $850,000. What is the NPV of this investment. The following information is pertinent to the analysis: Facts provided 1. New Laser Machine Cost 2. Estimated New Equipment Depreciation (Each Year) 3. Additional annual revenue generated from the new laser 5. Salvage Value of the new laser after ten years 6. New Equipment Estimated Useful Life 7. Marginal Tax Rate 8. Cost of Capital $850,000 $85,000 $55,000 $100,000 10 Years 36% 12%