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The above probility distribution table is for A Corporation that is planning to buy a machine for $80,000. The machine will be depreciated straight line
The above probility distribution table is for A Corporation that is planning to buy a machine for $80,000. The machine will be depreciated straight line over 5 -years with no resale value. Estimate Per annum Operating Profits is $20,000, The company is taxed at 30% and the applicable cost of capital is 12%. Should the company buy the machine? a. $13,149, reject b. $13,149, approve c. $13,149, reject d. $13,149, approve
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