Question: Scrumptious Sweets' decision to invest in a new machine to speed up the production of donuts and make the donuts more uniform in shape and
Scrumptious Sweets' decision to invest in a new machine to speed up the production of donuts and make the donuts more uniform in shape and size. The cost of the machine is $3,000,000, and it is expected to generate a profit of $500,000. Assume the tax rate for Scrumptious is 20% and from the prior slide, WACC is 11%. Evaluate the decision using EVA
(Enter the answer as a whole number. Do not use commas or periods in your answer. If your answer is 90,000, you would enter 90000)
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