12%, what is the firm's 18. d. Should this proje period? b. NPV? IRR? (Free cash flows) Beiger, Inc, a purchasing the adjacent property to to move its operation to Wyoming of underground storage tanks that conduct a soil test to determine 1 approximately $1,000. Remova It also plans to purchase hi It expects to incur depreciatione operating income during each of of net operating working capita years, it plans to move its equipme Inc has a marginal tax rate of 35% Are they conventional (traditional) 9. (NPV & IRR) Use the NPV an should be undertaken. Assun cond dergrouPeration property to temporarily expand major constraint. Prior to decocted to co Be tanks that remain from a de Removal of the tanks and refurbis es and refurbishient, building is to gener hi-tech manufacturing equipment, $100,000 per Poiger, Inc. Cuscounts payablertu. Boiger, cation. Boilery and acetain the propibudgeting? years. iterating wouling each of its ten years of operator in the form of inveoming and retase of capital bu king capital, mainly in facility in wye for the purpo this project be accepted? (use answers to parts band Manufacturing company in Harvey, Illinois is considering emporarily expand its operation for a ten-year period. It plans er such time. The major constraint that it faces is the removal emain from a defunct chemical plant. Prior to deciding, it will it is conducive for its operation. The test is expected to cost nks and refurbishing costs are expected to cost $1,500,000. nufacturing equipment, building, and land for $2,000,000. *pense of $100.000 per year. It expects to generate $400,000 in its ten years of operation. Boiger, Inc. customarily carries $350,000 mainly in the form of inventory and accounts payable. After ten nent to its new facility in Wyoming and retain the property. Boiger, %. What are its free cash flows for the purpose of capital budgeting? ational) cash flows? nd IRR techniques to determine if Boiger's project in problem 18. has an opportunity cost of 15%. uch flows listed below. The firm has a cost of if these independent (NPV & INDU 12%, what is the firm's 18. d. Should this proje period? b. NPV? IRR? (Free cash flows) Beiger, Inc, a purchasing the adjacent property to to move its operation to Wyoming of underground storage tanks that conduct a soil test to determine 1 approximately $1,000. Remova It also plans to purchase hi It expects to incur depreciatione operating income during each of of net operating working capita years, it plans to move its equipme Inc has a marginal tax rate of 35% Are they conventional (traditional) 9. (NPV & IRR) Use the NPV an should be undertaken. Assun cond dergrouPeration property to temporarily expand major constraint. Prior to decocted to co Be tanks that remain from a de Removal of the tanks and refurbis es and refurbishient, building is to gener hi-tech manufacturing equipment, $100,000 per Poiger, Inc. Cuscounts payablertu. Boiger, cation. Boilery and acetain the propibudgeting? years. iterating wouling each of its ten years of operator in the form of inveoming and retase of capital bu king capital, mainly in facility in wye for the purpo this project be accepted? (use answers to parts band Manufacturing company in Harvey, Illinois is considering emporarily expand its operation for a ten-year period. It plans er such time. The major constraint that it faces is the removal emain from a defunct chemical plant. Prior to deciding, it will it is conducive for its operation. The test is expected to cost nks and refurbishing costs are expected to cost $1,500,000. nufacturing equipment, building, and land for $2,000,000. *pense of $100.000 per year. It expects to generate $400,000 in its ten years of operation. Boiger, Inc. customarily carries $350,000 mainly in the form of inventory and accounts payable. After ten nent to its new facility in Wyoming and retain the property. Boiger, %. What are its free cash flows for the purpose of capital budgeting? ational) cash flows? nd IRR techniques to determine if Boiger's project in problem 18. has an opportunity cost of 15%. uch flows listed below. The firm has a cost of if these independent (NPV & INDU
