You have purchased a $200,000 machine to operate for five years. You are going to...
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You have purchased a $200,000 machine to operate for five years. You are going to depreciate this machine using straight line method for 5 years. The corporate tax rate is 35%. Discount rate is 5%. What is the NPV of your cost after tax? Please write your final cost as a positive number. Hint: you need to find the tax benefit generated by depreciation expense every year, and then discount those cash flows back to present value. There is no revenue in this scenarios; it is cost analysis. Please round up your answers to integer.
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