Consider the below data and calculate NPV at 6% discount rate:

• A machine costs $600 today (year 0). Assume this investment is fully tax-deductible, as stipulated by the new US corporate tax code of 2018.
• This company has current pre-tax profits from other projects that are greater than $600, so it can take full advantage of the investment tax break above in year 0.
• The machine will generate operating profits before depreciation (EBITDA) of $250 per year for 4 years. The first cash flow happens at the end of the first year after the machine is put in place (year 1).
• Depreciation is not tax-deductible. Notice that you do not need to calculate depreciation at all to solve this problem since it has no effect on taxes.
• The tax rate is 21%
• There is no salvage value at the end of the four years (the machine is worthless), and no required working capital investment.