has a first cost of $75,200, and its salvage value at the end of six years of estimated service life is $21,000. the operating costs of this machine are estimated to be $6,800 per year. extra income taxes are estimated at $2,400 per year.

[tex]\\$ N P V_A=-($ Operating costs $+$ Income taxes $) \times \frac{1-(1+I)^{-N}} ${I}+\frac{\text { Salvage }}{(1+I)^N}-$ Initial costs \\$N P V_A=-(\$ 6,800+\$ 2,400) \times \frac{1-(1+13 \%)^{-6}}{13 \%}+\frac{\$ 21,000}{(1+13 \%)^6}-75,200$\\N P V_A=-\$ 101,890.77$[/tex]

The Net Present Value : -$101,890.77

What is Income tax ?

The term "income tax" refers to a type of tax imposed by governments on income earned by businesses and individuals under their jurisdiction. According to the law, a taxpayer must file an annual income tax return to determine his tax liability. Income tax is a source of government revenue. Income tax is a tax levied on income or profits received by an individual or company. Income tax is usually calculated as the tax rate multiplied by taxable income. Tax rates may vary according to the type or characteristics of the taxpayer and the type of income

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has a first cost of​ $75,200, and its salvage value at the end of six years of estimated service life is​ $21,000. the operating costs of this machine are estimated to be​ $6,800 per year. extra income taxes are estimated at​ $2,400 per year.

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What is Income tax ?

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has a first cost of $75,200, and its salvage value at the end of six years of estimated service life is $21,000. the operating costs of this machine are estimated to be $6,800 per year. extra income taxes are estimated at $2,400 per year.