What is the NPV of the project at current cost of capital

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Reference no: EM131884477

Daily Enterprises is purchasing a $10.56 million machine. It will cost $62,910.00 to transport and install the machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.10 million per year along with incremental costs of $1.20 million per year. Daily’s marginal tax rate is 38.00%.

The cost of capital for the firm is 10.00%.

(answer in dollars..so convert millions to dollars)

The project will run for 5 years. What is the NPV of the project at the current cost of capital?

Reference no: EM131884477

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