The machine will increase revenue

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A machine costs $8 million and another $1 million to ship and modify. An increase of $2 million is needed for NOWC. the machine will increase revenue by $800,000 per year and will increase costs and expenses by $200,000 per year. The machine will be sold after 5 years for an estimated $4 million. the WACC for this project is 9%. Should this project be undertaken (assume 5 year straight line depreciation, no salvage value for depreciation purposes, and a tax rate of 40%)

Reference no: EM131333495

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