Solution-Calculate the NPV of the RSM

Calculate the NPV of the RSM

Reference no: EM133070391

Question - The following data has been assembled for a proposed rope splicing machine (RSM):

	RSM
Cost	$26,000
Life	5 years
Revenue (p.a.)	$12,000
Operating Expenses (p.a.)	$4,000
Depreciation (p.a.)	$5,000
Salvage Value	$500

If a firm requires a 10% p.a. return (after tax at the effective tax rate) on its investments and has an effective tax rate of 20%, calculate the NPV of the RSM.

Reference no: EM133070391

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Calculate the NPV of the RSM

Reference no: EM133070391

Reference no: EM133070391

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