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A corporation is considering manufacturing a new widget line of equipment and investing $250,000 in plant and equipment including $65,000 in NWC. The manufacturing plant
A corporation is considering manufacturing a new widget line of equipment and investing $250,000 in plant and equipment including $65,000 in NWC. The manufacturing plant will require $25,000 less labor than previously. The estimated life is 15years. Pro Forma Net Income is estimated at $27,000, depreciation $3,800 and taxes $7.000. Based on these numbers should they accept the plan, required rate 12% ???
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