EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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A new machine costs $798,410 and falls in a 26.50% CCA class.  The machine will have zero value after 5 years of use but will save $370,940 annually in operating costs before taxes in those five years.  Assume a tax rate of 32.73%.  Using a required return of 13.67%, what is the NPV of the machine purchase?

Options

$210,082

$215,760

$221,437

$227,115

$232,793

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