Question

The TinX Corp. is investing in a machine which will increase the quality of their product.
The initial investment in the machine is $800,000. The life of the machine is 4 years. The
machine will be depreciated using the straight-line method. The annual sales will be
$400,000, the annual fixed cost will be $50,000, and the annual variable cost will be 10%
of the sales. If the required rate of return is 12% and corporate tax rate is 30%, what is the
net present value of the project.
Calculate the net present value of the project.
(A)The net present value of the project is $323,819.26
(B) The net present value of the project is $41,345.77
(C) The net present value of the project is -$465,891.57
(D) The net present value of the project is $141,578.30
Answer
А.
b
c
d​

Answer 1

Answer:

Ans . d

Explanation: