Question: Santa s Helpers Inc. is considering a six - year project to improve its toy production efficiency. Buying a new toy - soldier assembly machine
Santas Helpers Inc. is considering a sixyear project to improve its toy production efficiency. Buying a new toysoldier assembly machine for $ is estimated to result in $ in annual pretax cost savings. The machine has a CCA rate of per year, and it will have a salvage value of $ at the end of the project. The machine also requires an initial investment in inventory of $ which will be recovered at the end of the project. If the tax rate is and the discount rate is what is the NPV of the machine purchase?
A$B $C $D $E None of the above
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