Question: Consider a $50,000 machine that will reduce pretax operating costs by $15,000 per year over a 5-year period. Assume no changes in networking capital and
Consider a $50,000 machine that will reduce pretax operating costs by $15,000 per year over a 5-year period. Assume no changes in networking capital and a salvage value of zero. Further assume straight-line depreciation to zero, a marginal tax rate of 35%, and a required return of 10%. The project NPV is?
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