Polyplast is considering purchasing an injection molding machine for $500,000 This machine will, before considering taxes and depreciation, reduce costs by $108,000 per year Polyplast 's tax rate is 30 , and the machine will not have any salvage value at the end of its 10 year useful life (Assume straight line depreciation for tax purposes and a discount rate of 12 further assume that the purchase price is paid now and that all other cash flows occur at year end) Required What is the NPV from purchasing the machine

Question: Polyplast is considering purchasing an injection-molding machine for $500,000. This machine will, before considering taxes and depreciation, reduce costs by $108,000 per year. Polyplast's tax

Polyplast is considering purchasing an injection-molding machine for $500,000. This machine will, before considering taxes and depreciation, reduce costs by $108,000 per year. Polyplast's tax rate is 30%, and the machine will not have any at the end of its 10 year useful life. (Assume straight-line depreciation for tax purposes and a of 12%; further assume that the purchase price is paid now and that all other cash flows occur at year end).
Required:
What is the NPV from purchasing the machine?

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