Question: 2. ( 8 points) A widget machine will cost $250,000. The anticipated increase in revenue will be $95,000/ year for 5 -years. Annual expenses will
2. ( 8 points) A widget machine will cost $250,000. The anticipated increase in revenue will be $95,000/ year for 5 -years. Annual expenses will be $10,000/ year for 5 -years. The depreciable life is estimated to be 5 -years and the salvage value will equal $30,000. Additional inventory necessary to run the machine will be $25,000. Initial training expenses are $40,000. Tax rate equals 40%. O Find the NPV@ 10%. 2 Find the IRR
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