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Graham Inc. plans to buy a new machine. The machine costs $7,000,000 now, has 6...

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Finance

Graham Inc. plans to buy a new machine. The machine costs $7,000,000 now, has 6 years of life, and will be fully depreciated to zero using the straight-line method of depreciation. The machine also requires $200,000 per year over its 6-year life. Tax rate is: 35% and appropriate discount rate: 12%

Calculate the annual depreciation expense for this machine.

Calculate the annual operating cash flow of this project.

Calculate the NPV of the project.

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