Question: Given the following information for the Share Pei Boutique Corpo
Given the following information for the Share-Pei Boutique Corporation, calculate the NPV of a New Machine and whether the investment should be made: cost = $7,500; installation cost is $1,500, and a net increase of net working capital of $1,000, estimated life of the machine is = 3 years; estimated salvage value = $1,000; net income before taxes and depreciation = $2,000 per year; method of depreciation = MACRS: tax rate = 40%; required rate of return = 15%?
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