Question: SupDog Inc. is considering buying a new server system with an initial cost of $4 million. The server she will have zero salvage value at

SupDog Inc. is considering buying a new server system with an initial cost of $4 million. The server she will have zero salvage value at the end of its 6-year life. The project will increase after tax Operating Can Pows (OCF) (including appropriate depreciation) to the firm by $1,250,000 a year, as thown in the table below. If the firm requires a 12 percent rate of return what is the Net Present Value of this project OCF 0 $4,000,000 1-6 51.250.000 10.252.755 1233055575 51.139 259.15 149953575 115525

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