Joos Company is considering the purchase of a new machine costing $245,000. This machine is estimated to
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Joos Company is considering the purchase of a new machine costing $245,000. This machine is estimated to use about $5,400 per year in operating expenses, but it will allow the company to earn an additional $92,000 per year in revenues. At the end of 3 years the machine will have a salvage value of $35,000. If the income tax rate is 30%, and the required rate of return is 8% what is the net present value of this project?
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham
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