Question: I know that the correct answer is B, but I need the manual work (not using excel). A digital assembly system that costs $160,000 is

I know that the correct answer is B, but I need

I know that the correct answer is B, but I need the manual work (not using excel).

A digital assembly system that costs $160,000 is expected to operate for 8 years. The estimated salvage value at the end of 8 years is $12,000. The system is expected to save the company $38,000 in labor costs before taxes and depreciation. The company will depreciate this system on a 5-year MACRS schedule. If the firm's cost of capital is 12% and its marginal tax rate is 35%, compute the NPV for the project. (Note: Requires MACRS tables.) a. $4,045 b. $7,196 c. $20,873 d. $167,196

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