Question: Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment Assume the new machine will generate
Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment Assume the new machine will generate after-tax savings of $250,000 per year over the next four years. If Gamma Electronics has a 11% cost of capital, what's the NPV of the investment? a $775,611 $275,611 $500,000 $185,411
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