Question: Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $800,000 to replace old equipment. Assume the new machine will generate
Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $800,000 to replace old equipment. Assume the new machine will generate after-tax savings of $400,000 per year over the next four years. If Gamma Electronics has a 14% cost of capital, what's the NPV of the investment? $365,485 $800,000 $1,165,485 O $185,605
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