Question: Stereo drama is considering a project that would last for2 years. The project would involve a initial investment of 270000for a new machinery that could

Stereo drama is considering a project that would last for2 years.

The project would involve a initial investment of 270000for a new machinery that could be sold for 110000 in the end of year 2.

The equipment would be depreciated to zero over 3 years using straight line method.

Annual cost of machinery would bein year 1 and year 2 is 220000 per year

Annual revenue would be in year 1 and 2 is 370000 per year

tax rate is 30% And cost of capital is 19.43% find NPV?

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