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A) Determine the after-tax cash flows. B) Determine the NPW of the project at MARR = 14%. Correct answers only please A manufacturing company is
A) Determine the after-tax cash flows.
B) Determine the NPW of the project at MARR = 14%.
Correct answers only please
A manufacturing company is considering acquiring a new injection-molding machine at a cost of $150,000. Because of a rapid cange in product mix, the need for this particular machine is expected to last only eight years, after which time the machine is expected to have a salvage value of $10,000. The annual operating cost is estimated to be $11,000. The addition of the machine to the current production facility is expected to generate an annual revenue of $48 000. The firm has only $100,000 available omits equity funds, so it must borrow the additional S50.000 required at an interest rate of 10% per year with repayment of principal and interest in eight equal annual amounts. The applicable marginal income tax rate for the firm is 25%. Assume that the asset qualifies for a seven-year MACRS property class Click the icon to view the MACRS depreciation schedules Click the icon to view the interest factors or discrete compounding when 1496 per yea (a) Determine the after-tax cash flows. Fill in the table below. (Round to one decimal place.) Period Ne t After-Tax Cash Flow thousand thousan thousand A manufacturing company is considering acquiring a new injection-molding machine at a cost of $150,000. Because of a rapid cange in product mix, the need for this particular machine is expected to last only eight years, after which time the machine is expected to have a salvage value of $10,000. The annual operating cost is estimated to be $11,000. The addition of the machine to the current production facility is expected to generate an annual revenue of $48 000. The firm has only $100,000 available omits equity funds, so it must borrow the additional S50.000 required at an interest rate of 10% per year with repayment of principal and interest in eight equal annual amounts. The applicable marginal income tax rate for the firm is 25%. Assume that the asset qualifies for a seven-year MACRS property class Click the icon to view the MACRS depreciation schedules Click the icon to view the interest factors or discrete compounding when 1496 per yea (a) Determine the after-tax cash flows. Fill in the table below. (Round to one decimal place.) Period Ne t After-Tax Cash Flow thousand thousan thousandStep by Step Solution
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