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BUSN 11 Introduction to Business Student Edition
11th Edition
ISBN: 9781337407137
Author: Kelly
Publisher: Cengage Learning
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Chapter 4, Problem 5LO
Summary Introduction
To discuss: Role of social responsibility in global arena.
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Correct Answer
The manager of company A is thinking about adding an air conditioner to the
office. The AC will cost $1630 to buy and install. The manager plans to use
the AC for 5 years and each year's depreciation rate is 18% of the purchase
price. The manager expects to sell the AC in 5 years for $880.The tax rate is
15% and the company's WACC is 15%. If the manager considers this
purchase of AC as an investment, what is the NPV (keep two decimal places
and assume that the AC will not affect the operations of the company)?
Sub. General accounting
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BUSN 11 Introduction to Business Student Edition
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