Question: Consider a $10,000 machine that will reduce pretax operating costs by $3,000 per year Over a 5-year period. Assume no changes in net working capital

Consider a $10,000 machine that will reduce pretax operating costs by $3,000 per year Over a 5-year period. Assume no changes in net working capital and a salvage value of zero. Further assume straight line depreciation to zero, a marginal tax rate of 34%, and a required return of 10%. The project NPV is?

A.$83

B.$449

C.$689

D.$827

E.$1,235

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