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he Campbell Company is evaluating the proposed acquisition of a new milling machine. The machine's base...

he Campbell Company is evaluating the proposed acquisition of a new milling machine. The machine's base price is $54,000, and it would cost another $6000 to modify it for special use for your firm. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $24,000. The machine would require an increase in net working capital (inventory) of $2,500. The milling machine would have no effect on revenues, but it is expected to save the firm$25,000 per year I before-tax operating costs, mainly labor. Campbell's margin tax rate is 40 percent. MACRS allowance percentages are 0.33, 0.45, and 0.15 for years 1,2 and 3 respectively what is the new project NPV if the project cost of capital is 6%

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