Daily Enterprises is purchasing a $10.54 million machine. It will cost $69,621.00 to transport and install the machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.29 million per year along with incremental costs of $1.19 million per year. Daily’s marginal tax rate is 38.00%. The cost of capital for the firm is 11.00%. (answer in dollars..so convert millions to dollars) The project will run for 5 years. What is the NPV of the project at the current cost of capital?
Daily Enterprises is purchasing a $10.54 million machine. It will cost $69,621.00 to transport and install the
machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.29 million per year along with incremental costs of $1.19 million per year. Daily’s marginal tax rate is 38.00%.
The cost of capital for the firm is 11.00%.
(answer in dollars..so convert millions to dollars)
The project will run for 5 years. What is the NPV of the project at the current cost of capital?
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