What is npv net present value on the proposed machine with a 12.5% rate of return? use this information Costs of old machine is 150,000.00 and the proposed machine is 180,000.00, Installation cost on the old machine is 10,000.00, the proposed machine is 20,000.00, MACRS is five years for both machines, Market value is $105,000.00 for old machine and it was purchased 2 years ago? What is the NPV on the proposed machine?

The company pays 40 percent taxes on ordinary income and capital gains.

updated information is what table to use? PVIFA table T5 or PVIF table T3 for 12.5% for 5 years.

Can use this table existing machine proposed machine

costs 150,000.00 180,000.00

Installation 10,000.00 20,000.00

MARCS 5 years 5 years

Market value 105,000.00

purchased 2 years ago