Unformatted text preview: In addition, the machine will be depreciated annually over a six year life. What is the machine’s net present value if the cost of capital is 8%? Ignore tax effects. Answer: ________________ B. What if the company has a tax rate of 25%. Taking into account income taxes, calculate the new net present value. Answer: ________________...
View
Full Document
 Winter '08
 Buckless
 Managerial Accounting, Depreciation, Progressive Tax

Click to edit the document details