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The capital budgeting director of National Products Inc. is evaluating a new 3-year project that would decrease operating costs by $30,000 per year without affecting
The capital budgeting director of National Products Inc. is evaluating a new 3-year project that would decrease operating costs by $30,000 per year without affecting revenues. The project's cost is $50,000 The project will be depreciated using he MACRS method over its 3 vear class life. The applicable MACRS depreciation rates are 33 49% 5%, and t v ill have a zero sa age value after 3 years. The marginal tax rate of Nationa Pro cts s 35% and the pr ect's cost o capital 12 Whats the project's NP a. $10,214 O b. $11,010 C. $7,068 Od. $12,387 e.$ 8,324
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