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

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)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!