The manager of a Gym is adding a new treadmill to the gym. The treadmill will cost $2000 to buy and install. The manager
Posted: Thu May 19, 2022 6:21 am
The manager of a Gym is adding a new treadmill to the gym. The
treadmill will cost $2000 to buy and install. The manager
plans to use the treadmill for 5 years and each year's
depreciation rate is 14% of the purchase price. The manager expects
to sell the treadmill in 5 years for $720.The tax rate is 20%
and the gym's WACC is 7%. If the manager considers this purchase of
treadmill as an investment, what is the NPV?
treadmill will cost $2000 to buy and install. The manager
plans to use the treadmill for 5 years and each year's
depreciation rate is 14% of the purchase price. The manager expects
to sell the treadmill in 5 years for $720.The tax rate is 20%
and the gym's WACC is 7%. If the manager considers this purchase of
treadmill as an investment, what is the NPV?