Question: Animals, Inc. is considering a machine that will cost $ 1 5 , 0 0 0 and which can be sold after 3 years for

Animals, Inc. is considering a machine that will cost $15,000 and which can be sold after 3 years for $2,000. The machine will save Animals costs of $18,000 per year for 3 years. The machine will be depreciated on a straight line basis over three years to a zero salvage value. Animals has a 20% tax rate and a 10% cost of capital. What is the NPV of the machine?
Multiple Choice
$25,300
$23,299
$29,350
$24,500

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