Kinky Copies may buy a high-volume copier. The machine costs $130,000 and this cost can be fully depreciated immediately

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Kinky Copies May Buy A High Volume Copier The Machine Costs 130 000 And This Cost Can Be Fully Depreciated Immediately 1 (84.34 KiB) Viewed 65 times

Kinky Copies may buy a high-volume copier. The machine costs $130,000 and this cost can be fully depreciated immediately. Kinky anticipates that the machine actually can be sold in 5 years for $30,000. The machine will save $22,000 a year in labor costs as an after-tax reduction, but will require an increase in working capital, mainly paper supplies, of $11,000. The firm's marginal tax rate is 21%, and the discount rate is 6%. (Assume the net working capital will be recovered at the end of Year 5.) What is the NPV of this project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.).