What is the projects npv, Your company is analyzing

What is the projects npv

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Reference no: EM131149037

Use the following information to answer two questions :

Your company is analyzing purchase of a machine costing $5,900 today.

The investment promises to add $18,500 to sales one year from today,

$14,500 two years from today,

and $18,000 three years from today.

Incremental cash costs should consume 75% of the incremental sales.

The tax rate is 30% and the company's financing rate is 8.2%.

The investment cost is depreciated to zero over a 3-year straight-line schedule. What is the project's NPV?

Reference no: EM131149037

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