Stanton Inc, is considering the purchase of a new machine which will reduce manufacturing costs by 5000 annually and increase earnings before depreciation and taxes by 6000 dollar. Stanton will use the MACRS method to depreciate the machine and it expects to sell the machine at the nd of its 5 year operating life for 10000 dollars before taxes. Stanton's Marginal tax rate is 40 percent and its uses a 9 percent required rate of return to evaluate projects of this type. If the machines cost 40,000 what is the projects NPV

7500

1014

2292

5040

817