Question: After completing her analysis, she learned from another publisher that these binding machines, although a necessary part of her business, required considerable maintenance. Rochelle got

After completing her analysis, she learned from another publisher that these

After completing her analysis, she learned from another publisher that these binding machines, although a necessary part of her business, required considerable maintenance. Rochelle got a maintenance quote of $276 /year for the anticipated 5-year ownership period, whereas the maintenance was already included in the Swift 5-year lease price. Rochelle recalled that her initial "pre-maintenance" NPV for purchasing the binding machined was $28,479. What is the REVISED NPV of the Purchase Option, once again assuming a cash tax rate of 25% and a discount rate of 7.95% ? $32,004 $27,672 $29,510 $31,102 $29,307

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