Question: 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

Animals, Inc. is considering a machine that will cost $15,000 and

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 $24,500 $29,350 $23,299 $25,300

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