What is the net present value of the machine

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A firm is considering purchasing a machine that costs $120,000 and will be depreciated straight-line over 6 years to a value of zero. The machine will save $30,000 in costs each year. The firm's marginal tax rate is 35 percent and the discount rate is 10 percent. What is the net present value of the machine?

Reference no: EM132812020

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