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The manager of a Gym is adding a new treadmill to the gym. The treadmill will cost $2000 to buy and install. The manager plans
The manager of a Gym is adding a new treadmill to the gym. The treadmill will cost $2000 to buy and install. The manager plans to use the treadmill for 5 years and each year's depreciation rate is 14% of the purchase price. The manager expects to sell the treadmill in 5 years for $720.The tax rate is 20% and the gym's WACC is 7%. If the manager considers this purchase of treadmill as an investment, what is the NPV?
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