申論題

Problem 2 [20%]
L Inbee Corporation is considering the acquisition of a new honey dipping machine that costs $595,000. The machine is expected to have a five-year service life and will help Inbee for annual savings in cash operating costs of $170,000. Inbee uses the sum-of-the-years'-digits method of depreciation and depreciates the asset over its five-year service life. Inbee Corporation is subject to a 25% income tax rate and has an after-tax hurdle rate of 12%.
 Required:

(2) Calculate the net present value for the investment in new machinc. (5 points)