Question: 7. (6 pts) A widget machine will cost $480,000. The anticipated increase in revenue will be $140,000/ year for 5-years. Annual expenses will be $30,000

7. (6 pts) A widget machine will cost $480,000. The anticipated

7. (6 pts) A widget machine will cost $480,000. The anticipated increase in revenue will be $140,000/ year for 5-years. Annual expenses will be $30,000 /year for 5 -years. The depreciable life is estimated to be 5 -years and the salvage value will equal $35,000. Additional inventory necessary to run the machine will be $26,000. Initial training expenses are $20,000. Tax rate equals 40\%. (1) Find the NPV@10\%. 2 Find the IRR. 3 Find the discounted payback and convert this into a percentage

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