Cliff Corp is considering a $120,000 machine that will reduce pretax operating costs by $50,000 per...
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Cliff Corp is considering a $120,000 machine that will reduce pretax operating costs by $50,000 per year over a 3-year period. Assume no changes in net working capital and a salvage value of zero. Further assume straight-line depreciation to zero, a marginal tax rate of 40%, and a required return of 12%. The project NPV is: Select one: a. $9.516 b. $ -92 OC. $ 92 d. $ 92,146 e. None of the above. Cliff Corp is considering a $120,000 machine that will reduce pretax operating costs by $50,000 per year over a 3-year period. Assume no changes in net working capital and a salvage value of zero. Further assume straight-line depreciation to zero, a marginal tax rate of 40%, and a required return of 12%. The project NPV is: Select one: a. $9.516 b. $ -92 OC. $ 92 d. $ 92,146 e. None of the above.
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Related Book For
Principles of managerial finance
ISBN: 978-0132479547
12th edition
Authors: Lawrence J Gitman, Chad J Zutter
Posted Date:
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