Vision Medical Labs wants to expand its service offering by buying a new machine. The machine will cost $250,000 and will generate additional annual expenses
Vision Medical Labs wants to expand its service offering by buying a new machine. The machine will cost $250,000 and will generate additional annual expenses of $33,000 for labor and materials forever. Apart from these expenses, it will create annual profits of $67,000 forever.
The company has a cost of capital of 13% and the tax rate is zero.
What is the NPV of the machine project?
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Authors: Unurjargal Nyambuu, Charles S. Tapiero
1st Edition
1119252652, 978-1119252658
