Question: QUESTION 22 Gamma Electronics Gamma Electronics is considering the purchase of testing equipment that will cost $500,000 to replace old equipment. Assume the new machine

QUESTION 22 Gamma Electronics Gamma Electronics is considering the purchase of

QUESTION 22 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 15% cost of capital, what's the NPV of the investment? A. $213,745 B. $185,865 C. $713,745 D. $500,000

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