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wered Question 11 076.25 pts Your company is considering purchasing a new machine that costs $75,000. The machine is expected to generate additional sales over
wered Question 11 076.25 pts Your company is considering purchasing a new machine that costs $75,000. The machine is expected to generate additional sales over the next 6 years as shown below Year 1 2. 3 Sales $45,000 $55,000 $40,000 $30,000 $15,000 $6,000 4 5 6 The project will require an investment in NWC equal to 6% of the sales expected next year The machine will be depreciated using the following MACRS schedule: 1 2 3 4 5 6 20.00% 32.00% 19 20% 11.52% 11.52% 5.76% At the end of 6 years, the project will end and the machine will be sold for $20,000 The tax rate is 25% and the discount rate is 15%. Find the NPV of the project. Round your answer to the nearest dollar, for example 1,247. If the answer is negative, include the negative sign, for example - 1,247
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