Question: A company is considering purchasing a $ 1 0 , 0 0 0 machine that will reduce pretax operating costs by $ 3 , 0
A company is considering purchasing a $ machine that will reduce pretax operating costs by $ per year over a year period. Assume no changes in net working capital and a zero scrap value after five years. For simplicity, assume straightline depreciation to zero, a marginal tax rate of and a required return of The net present value of acquiring this machine is:
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