Question
Tesla is considering buying a new machine, with a price tag of $1 million. The machine will last 10 years and is expected to save
Tesla is considering buying a new machine, with a price tag of $1 million. The machine will last 10 years and is expected to save the company $125,000 per year. Net working capital is $10,000 every year. Salvage value is $20,000. Assuming the discount rate is 10%, find the NPV of the project. Ignore taxes in this question.
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
