A new piece of manufacturing equipment costs $820,000. This could be depreciated at 30% per...
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A new piece of manufacturing equipment costs $820,000. This could be depreciated at 30% per year. The equipment would be worthless after 5years. The new equipment would aso require the company ta increase NWC by $36,500, This new equipment would save the organization $300,000 per year before taxes and operating costs. Our corporate tax rate is 40% You calculated the WACC to be 15% what is the NPV of this project , AND do we accept or reject this project? Why?
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