Need guidance on how to do this Intro Better Tires...
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Intro Better Tires Corp. is planning to buy a new tire making machine for $50,000 that would save it $60,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The company uses a discount rate of 11 % and has a tax rate of 21 %. Part 1 Attempt 1/5 for 1 pts. What is the cash flow in each year of operation (years 1 to 3)? No decimals Submit Part 2 B Attempt 1/5 for 1 pts. What is the NPV of this project? No decimals Submit
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