Find the npv, Machine used has a 3 year tax life,

Find the npv

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Reference no: EM1353129

Equipment used has a 3 year tax life, depreciated by the straight line method over the 3 year life and would have 0 salvage value, no new capital required, revenues and operating cost are expected to be constant over the 3 year life.
WACC 10%
Net investment cost $65,000.
Straight line depreciation rate 33.33%
Sales revenue $70,000.
Operating cost excl. depreciation $25,000.
Tax rate 35%
cash flow is constant in year 1-3

What is the NPV?

Reference no: EM1353129

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Find the npv

Reference no: EM1353129

Reference no: EM1353129

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