The manager of company A is thinking about adding an air conditioner to the office. The AC will cost $1310 to buy and install. The manager plans to use the AC for 5 years and each year's depreciation rate is 17% of the purchase price. The manager expects to sell the AC in 5 years for $370.The tax rate is 15% and the company's WACC is 6%. If the manager considers this purchase of AC as an investment, what is the NPV (keep two decimal places and assume that the AC will not affect the operations of the company)?

Answer rating: 100% (QA)

PV 1310 Year 1 Depreciation 1310 17 22270 Year 1 Ta... View the full answer