Compute the npv of the project

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Question - Overnight Laundry is considering the purchase of a new pressing machine that would cost $120 000 and produce incremental operating cash flows of $24 000 annually for 16 years. The machine has a terminal value of $9 000 and is depreciated for income tax purposes using straight-line depreciation over a 16-year life. Overnight Laundry's marginal tax rate is 30%. The company uses a discount rate of 10 per cent. Compute the NPV of the project?

Reference no: EM133128300

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