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Discuss what is the net present value of the investment

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NextToo is considering an investment that will require purchasing a piece of equipment for $1,200 and last for two years.

The investment will pay $1,000 at the end of each of the two years before taxes. Taxes are 30%, and the $1,200 equipment is deductible for tax purposes over the two year period using straight line depreciation. That would be $600 of depreciation year year.

NextToo requires a 10% return on investments. What is the Net Present Value of the investment?

Reference no: EM131809598

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