A new electronic process monitor costs $870,000. This cost could be depreciated at 31% per year (Class
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A new electronic process monitor costs $870,000. This cost could be depreciated at 31% per year (Class 10). The monitor would actually be worthless in five years. The new monitor would save $470,000 per year before taxes and operating costs. If we require a 16% return, what is the NPV of the purchase? Assume a tax rate of 46%.
NPV $
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0071051606
8th Canadian Edition
Authors: Stephen A. Ross, Randolph W. Westerfield
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