Question: Question 14 3 pts A company is considering purchasing a $10,000 machine that will reduce pretax operating costs by $3,000 per year over a 5-year
Question 14 3 pts A company is considering purchasing a $10,000 machine that will reduce pretax operating costs by $3,000 per year over a 5-year period. Assume no changes in net working capital and a zero scrap value after five years. For simplicity, assume straight- line depreciation to zero, a marginal tax rate of 34 percent, and a required return of 10 percent. The net present value of acquiring this machine is: $449. $10,083 $83. $10,449
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