(Solution) - Karabekian Company has decided to invest in new factory machiner -(2025 Original AI-Free Solution)

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Karabekian Company has decided to invest in new factory machinery that will decrease labor costs by $50,000 per year. The new machinery will cost the company $200,000 and has an expected salvage value of $20,000 after nine years. The corporate tax rate is 35%, and the company?s discount rate is 12%. Compute the NPV of this investment. Should Karabekian go ahead with the investment?