What is the NPV of the project and should it be accepted

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Question - A proposed cost-saving device has an installed cost of $60,500 and will reduce costs by an average of $21,000 per year. It will actually function for 6 years at which time it will have a salvage value of $19,000. The device will be in a special CCA class with a CCA rate of 20% and it will be the only asset in the class. The tax rate is 40% and cost of capital is 13%. What is the NPV of the project and should it be accepted?

Reference no: EM132846082

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