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Your company is thinking about the purchase of a partial interest in a new training facility. The acquisition would eliminate about 200,000 of annual expenses

Your company is thinking about the purchase of a partial interest in a new training facility. The acquisition would eliminate about 200,000 of annual expenses over each of the next 10 years. The total purchase price of your partial interest is 5,000,000 plus annual operating cost of 50,000. Assume straight line depreciation for 20 years. The company tax rate is 40% and their cost of capital is 8%. What is the net present value of this purchase? please show formula and math in your answer

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