Compute the npv of the annual tax savings

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Reference no: EM131514846

If you purchase a power turbine for $5.0 million, that you can either declare as an expense immediately in the first year for its full value or you can depreciate with 3-year MACRS (depreciation rates: 33.33%, 44.45%, 14.81%, and 7.41%). The tax rate will be 8%. Consider an after tax MARR of 10%. Compute the NPV of the annual tax savings ? (NO Decimals!)

Reference no: EM131514846

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