Question: You purchased a machine at $3,000,000. It will be fully depreciated using straight line depreciation over the next 5 years. There is no maintenance cost
You purchased a machine at $3,000,000. It will be fully depreciated using straight line depreciation over the next 5 years. There is no maintenance cost or salvage value. The discount rate is 8%. What is the NPV of your cost (write down the absolute value)? Your tax rate is 30% (Hint: tax rate matters when you discount future cash flows) You must round up your answer to integer and type the ABSOLUTE VALUE without the dollar sign. (For example, if your answer is -20000.56. type 20001)
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