Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.- A company wants to invest in a business with the following assets: Salvage Value(%) Fixed Assets: - Machinery -Equipment - Office equipment - Building

image text in transcribed

1.- A company wants to invest in a business with the following assets: Salvage Value(%) Fixed Assets: - Machinery -Equipment - Office equipment - Building Investment $400,000 $300,000 $. 50,000 $200,000 Depreciation (%) 8% 10% 16% 20% 25% 10% 20% 5% - Land $100,000 150% Current Assets: - Cash & Inventory $150,000 100% The net incomes are $500,000/year for the first 2 years and $600,000/year for the last 4 years. With a total project life of 5 years and tax rate of 30%, prepare the information (table) for the before and after the tax cash flow and calculate the AE for the after the tax cash flow with a MARR of 20%. (40 points) 1.- A company wants to invest in a business with the following assets: Salvage Value(%) Fixed Assets: - Machinery -Equipment - Office equipment - Building Investment $400,000 $300,000 $. 50,000 $200,000 Depreciation (%) 8% 10% 16% 20% 25% 10% 20% 5% - Land $100,000 150% Current Assets: - Cash & Inventory $150,000 100% The net incomes are $500,000/year for the first 2 years and $600,000/year for the last 4 years. With a total project life of 5 years and tax rate of 30%, prepare the information (table) for the before and after the tax cash flow and calculate the AE for the after the tax cash flow with a MARR of 20%. (40 points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Consolidation In The European Financial Industry

Authors: R. Bottiglia, E. Gualandri , G. Mazzocco

1st Edition

0230233228,0230275028

More Books

Students also viewed these Finance questions