Yu decided to purchase a machine for a 5 year operation


You decided to purchase a machine for a 5 year operation. The machine cost $2,000,000 upfront. It has a maintenance cost of $1000 per year. You will depreciate it fully over 5 years via straight line. At the end of fifth year, you expect to sell the machine at $400,000. Your tax rate is 30%. (Hint: Tax rate matters)

The discount rate is 8%.

What is the NPV of the cost of this ownership ? You must round your answer to integer. (For example, if your answer is 105005.67, you must write 105006). Answer must be a positive number (absolute value)

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Financial Management: Yu decided to purchase a machine for a 5 year operation
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