Use the Information for the Question(s)below

question 78

Essay

Use the information for the question(s)below.
Kinston Industries is considering investing in a machine that will cost $125,000 and will last for three years.The machine will generate revenues of $120,000 each year and the cost of goods sold will be 50% of sales.At the end of year three the machine will be sold for $15,000.The appropriate cost of capital is 10% and Kinston is in the 21% tax bracket.
-Assume that Kinston's new machine will be depreciated straight line to a salvage value of $5,000 at the end of year three.What is the NPV for this project?

---

Definitions:

Wheelchair

A chair mounted on wheels, designed to be a means of mobility for individuals who cannot walk.

Examination Table

An examination table is a piece of medical equipment used in healthcare settings, designed to support patients during medical examinations or treatments.

Follow-Up Appointment

A scheduled meeting or examination after an initial consultation or treatment to assess progress or manage ongoing care.

Manipulation

The systematic movement of a patient’s body parts.