Net present value for the first twelve years of investment

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Reference no: EM131067217

Gov. Swann wants to expand his cannonball factory with a $6,800 addition. It will increase revenue by $6,000 per year, and only increase costs by $3,000. The $6,800 consists of $4500 for a building and $2,300 for machinery. Strangely, current US depreciation rules apply, and the income tax rate is 35%, Based on his discount rate of 19%, what is Swann's net present value for the first twelve years of the investment?

Reference no: EM131067217

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