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2. Eggs, Inc., is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The equipment
2. Eggs, Inc., is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The equipment will cost $425,000 and will be eligible for bonus depreciation-2. The equipment can be sold for $45,000 at the end of the project in 5 years. Sales would be $275,000 per year, with O&M costs equal to 35% of sales. The tax rate is 22% and the after-tax MARR is 9%. What is the project's NPW? 3. An engineer's salary was $55,000 in 2002. The same engineer's salary in 2011 is $85,000. If the company's salary policy dictates that a yearly raise in salaries reflect the cost-of-living increase due to inflation, what is the average inflation rate for the period 2002-2011?
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