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Your company is considering the purchase of a new machine. The machine will generate $8,000 in additional sales per year, and it will also have
Your company is considering the purchase of a new machine. The machine will generate $8,000 in additional sales per year, and it will also have increased costs of $1,000 per year. The machine costs $24,000 and has an expected life of 5 years with no salvage value. The machine will be depreciated using straight line depreciation. The company's tax rate is 25%.
The company want to make a return of 14% on this investment. Find the NPV of the new machine. Round your answer to the nearest dollar.
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