Question: You are running a grocery store thinking about installing the Sushi 1000 vending machine. The machine costs $100,000 today (year 0) and will last six
You are running a grocery store thinking about installing the Sushi 1000 vending machine. The machine costs $100,000 today (year 0) and will last six years (years 1 through 6). Assume annual sales in years 1 through 6 will be $75,000, costs will be $50,000, and depreciation will be $20,000 (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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