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1 . Sparkling Water, Incorporated, expects to sell 3 . 7 million bottles of drinking water each year in perpetuity. This year each bottle will
Sparkling Water, Incorporated, expects to sell million bottles of drinking water each year in perpetuity. This year each bottle will sell for $ in real terms and will cost $ in real terms. Sales income and costs occur at yearend. Revenues will rise at a real rate of percent annually, while real costs will rise at a real rate of percent annually. The real discount rate is percent. The corporate tax rate is percent. What is the value of the firm today? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, eg
You are evaluating two different silicon wafer milling machines. The Techron I costs $ has a year life, and has pretax operating costs of $ per year. The Techron II costs $ has a year life, and has pretax operating costs of $ per year. For both milling machines, use straightline depreciation to zero over the projects life and assume a salvage value of $ If your tax rate is percent and your discount rate is percent, compute the EAC for both machines Techron I and Techron IIA negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to decimal places, eg
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