The manager of Gaming company is thinking about adding a pc to the office. The pc will cost $3000 to buy and install. Th

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answerhappygod
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The manager of Gaming company is thinking about adding a pc to the office. The pc will cost $3000 to buy and install. Th

Post by answerhappygod »

The manager of Gaming company is thinking about adding
a pc to the office. The pc will cost $3000 to buy
and install. The manager plans to use the pc for 5 years and
each year's depreciation rate is 12% of the purchase price. The
manager expects to sell the pc in 5 years for $700.The tax
rate is 25% and the company's WACC is 10%. If the manager considers
this purchase of pc as an investment, what is the NPV?
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