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Bruin Store is considering the purchase of a new $1,000 high-tech photo booth. This photo-booth has...

Bruin Store is considering the purchase of a new $1,000 high-tech photo booth. This photo-booth has an economic life of 3 years and will be fully depreciated by the straight-line method. The equipment will take 10,000 photos in the first year. The number of photos will grow by 5% every year. Each photo costing $0.50 and priced at $1.25. The machine will be used for 3 years and then will be worthless. Assume that the discount rate is 9.2% and the tax rate is 35%. What is the NPV of this equipment?

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jeff jeffy answered 1 year ago
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