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You have been asked to evaluate the proposed acquisition of a new machine. The machine's price is $50,000, and it would cost $10,000 to modify
You have been asked to evaluate the proposed acquisition of a new machine. The machine's price is $50,000, and it would cost $10,000 to modify it. Assume that the machine falls into the MACRS 3-year class (33%, 45%, 15%, 7%), that it would be sold after 3 years for $20,000, and that it would require an increase in net working capital (spare parts inventory) of $2,000. The machine is expected to save the firm $20,000 per year in before-tax operating costs. The firm's tax rate is 40% and the project's cost of capital is 10%. What is the NPV of the project (i.e., purchasing Please enter 2 digits after the decimal point
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