A Question 8 (3 points) Retake question The manager of company A is thinking about adding an air conditioner to the offi

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A Question 8 (3 points) Retake question The manager of company A is thinking about adding an air conditioner to the offi

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A Question 8 3 Points Retake Question The Manager Of Company A Is Thinking About Adding An Air Conditioner To The Offi 1
A Question 8 3 Points Retake Question The Manager Of Company A Is Thinking About Adding An Air Conditioner To The Offi 1 (106.46 KiB) Viewed 12 times
A Question 8 (3 points) Retake question The manager of company A is thinking about adding an air conditioner to the office. The AC will cost $1450 to buy and install. The manager plans to use the AC for 5 years and each year's depreciation rate is 13% of the purchase price. The manager expects to sell the AC in 5 years for $780.The tax rate is 20% and the company's WACC is 5%. If the manager considers this purchase of AC as an investment, what is the NPV (keep two decimal places and assume that the AC will not affect the operations of the company)? Your Answer: Answer
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