Question: A company can purchase a new machine for $1,000,000. It will generate OCF of $275,000 per year for the next 5 years. At the end
A company can purchase a new machine for $1,000,000. It will generate OCF of $275,000 per year for the next 5 years. At the end of the 5 years it will be sold for $93,000 and will have book value of $80,000. There are no working capital changes. The corporate tax rate is 25%. What is the CFFA in year 5? $187.000 O $364.750 O $275,000 $380,000 $368,000 Question 19 5 pts A company can purchase a new machine for $1,000,000. It will generate OCF of $275,000 per year for the next 5 years. At the end of the 5 years it will be sold for $93,000 and will have book value of $80,000. There are no working capital changes. The corporate tax rate is 25%. What is the NPV of this project at a rate of 8.00%? $234.678.56 $154,690.36 $190,560.34 $161.289.50 $159,077.60
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