Find the NPV$.$ The project requires purchasing a $$750,000$ machine that will have a $$325,000$ salvage value at the end of the project. Anticipated sales are $$1,000,000,$ COGS are $$365,000,$ SG&A are $$299,000,$ and depreciation is straight$-$line to $0$ over the project's eight year life. The tax rate is $40\%$ and the discount rate is $15\%.$

Sometimes the depreciation calculation is done to deprecitate down to the salvage value:

Depreciation $=($cost $-$ estimated salvage$)/$ project life

Recalculate NPV using this method $($you might want to copy and paste the entire analysis so that there are two in your sheet$).$ What happens to NPV$?$ What is going on here?