Question: You are running a grocery store thinking about installing the Sushi 1000 vending machine. The machine costs $100k today (year 0) and will last five
You are running a grocery store thinking about installing the Sushi 1000 vending machine. The machine costs $100k today (year 0) and will last five years (years 1-5). Assume annual sales in years 1 through 5 will be $75k, costs will be $50k, and depreciation will be $20k (straight-line). Assume a discount rate of 10%. Calculate the cash flows and NPV of this project first assuming a corporate tax rate of 0% and then assuming a corporate tax rate of 40%.
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