7.15 A corporation is considering purchasing a machine that will save $ 210,000 per year before taxes. The cost of operating the machine, including maintenance, is $60,000 per year. The machine, costing $ 120,000, will be needed for four years after which it will have a salvage value of $16,000. If the firm wants a 12% rate of return before taxes, what is the net present value of the cash flows generated from this machine? Answer: 345763

7.15 A corporation is considering purchasing a machine that will save $ 210,000 per year before taxes. The cost of operating the machine, including maintenance, is $60,000 per year. The machine, costing $ 120,000, will be needed for four years after which it will have a salvage value of $16,000. If the firm wants a 12% rate of return before taxes, what is the net present value of the cash flows generated from this machine? Answer: 345763

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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