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A manufacturing company has found that altering their process improves the quality of their product so that they have less waste per ton of raw

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A manufacturing company has found that altering their process improves the quality of their product so that they have less waste per ton of raw material used to produce their product. The new process, however, requires more energy and more labor. Training, support and setup for the new process is required to make sure results will be consistent. The company believes the benefit will last four yoars before the product is obsolete in the rnarket. The company has a 13% hurdie rate for projects of this type (i.e, the required rate of return is 13\%) and requires a 28-month payback period. They are subject to a 21% tax rate. The initial investment consists of $93,113, all of which is a period expense (l.e., part of cash operating expenses in Year o). The net savings, including the effect of material consumption, labor, energy, etc., would $30498 per year for years 14. This amount would reduce cash operating oxpenses in the forecast years (creating a positive effect on operating income). What is the net present value of this proposal? Enter your answer as a monetary amount rounded to four decimal ploces, but without the currency symbol. For example, if your answer is $90. 1234 , enter 90.1234 . If you answer is less than zero, enter a negative value, lithe this: -90.1234 Type your ariswer. Ipoint A company wants to replace a machine with a better version. The replacement machine will require a net imvestment of $190,000 and is expected to generate free cash flow of $100,000 per year for the next 5 years. The company requires 12 Sireturn on capital investments of this sort and desires a 24 -month pay back period. The existing machine would continue to function for the next five years if it is not replaced, but igradualiy become less useful. Free cash flows for the existing machine are forecasted to be $80,000 in year 1,$60,000 in year 2,$40,000 in year 3,$20,000 in year 4 and $10,000 in year 5. How mary monthis is the pay back period for this proposal? Enter your answer as a number with two decimal places. For example, if your answer is 90.1234 , enter 90.12 A company wants to add a manufacturing machine to an existing factory to accommodate rising demand for their product. The factory is close to its effective capacity now, so the new machine will support sales which are expected to grow linearly during the next four years, topping out at $2,000,000 for years 4 and 5,$3 les for each year are forecasted to be: - Year 1: $500,000 - Year 2:\$1,000,000 - Year 3:\$1,500,000 - Year 4:\$2,000,000 - Year 5:$2,000,000 - Cash operating costs will be 70% of revenue for each year. The machine has an installed cost of $1,500,000, and will be depreciated straightline over 5 years assuming a 10% salvage value. The salvage arnount will also be included as part of the terminal value, representing the amount recaptured at the end of year 5 . There will be no tax effect in the salvage value because the book value is expected to be 10% of the historical cost at the end of yep 5. There will be no need for additional net working capital in the initial inwestment, but the need for net working capital will grow in proportion to sales growth, When capacity tops out at the end of year 4 , the total net working capital will be $60,000. This amount will be released in the final year as part of the terminal value. The company's WACC (weighted average cost of capital) is 9%, so this will be the required rate of return for this expansion. They also would like a 24 -month payback period so that capital will become available for other projects. They are subject to a 30% tax rate. What is the internal rate of return for this proposal? Enter your answer as o percentage with two decimal places, but without the percent symbol, For example, if your answer is 90,1234%, enter 90,12 A company wants to add a manufacturing machine to an existing factory to accommodate rising demand for their product. The factory is close to its effective capacity now, so the new machine will support sales which are expected to grow linearly during the next four years, topping out at $2,100,000 for years 4 and 5, Sales for each year are forecasted to be: - Year 1: $478,702 - Year 2: 5998.563 - Year 3:51,487,122 - Year 4:$2,100,000 - Year 5:\$2,100,000 - Cash operating costs will be 69% of revenue for each year. The machine has an installed cost of $1,236,986, and will be depreciated straightline over 5 years assuming a 9% salvage value. The salvage amount will also be included as part of the terminal value, representing the amount recaptured at the end of year 5 . There will be no tax effect in the salvage value because the book value is expected to be 9% of the historical cost at the end of year 5. There will be no need for additional net working capital in the initial investment, but the need for net working capital will grow in proportion to sales growth. When capacity tops out at the end of year 4 , the total net workingtapital will be $60,000. This amount will be released in the final year as part of the terminal value. The company's WACC (weighted average cost of capital) is 12%, so this will be the required rate of return for this expansion, They also would like a 31 -month payback period so that capital will become avaifable for other projects. They are subject to a 21% tax rate. What is the net present value of this proposal? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90,1234, enter 90.1234 . If you answer is less than zero, enter a negative value, like this:-90.1234 1 point A company wants to replace a machine with a better version. The replacement machine will require a net investment of $187.845 and is expected to generate free cast fiow of $86,450 per year for the next 5 years. The company requires 13% return on capital investments of this sort and desires a 24 -month pay back period, The existing machine would continue to function for the noxt five years if it is not replaced, but gradually become less useful. Free cash flows for the existing machine are forecasted to be $91,041 in year 1,$64,154 in year 2,$44,440 in year 3,$22,847 in year 4 and $10,248 in year 5 . What is the incremental cash flow for year 1 ? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For exampic, if your answer is $90.1234, enter 90.1234 . If you answer is less than zero, enter a negative value, like this: 90.1234 Typeyour answer. tpoint A company wants to replace a machine with a better version. The replacement machine will require a net investment of $150,319 and is expected to generate free cash flow of $87,595 per year for the next 5 years. The compary requires 13% return on capital investments of this sort and desires a 24 -month pay back period. The existing machine would continue to function for the next five years if it is not replaced, but gradually become less useful. Free cash flows for the existing machine are forecasted to be $92,628 in year 1,$55,273 in year 2,$33,159 in year 3,$16,905 in year 4 and $6,519 in year 5 . What is the net present value of this proposal? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 . If you answer is less than zero, enter a negative value, like this: =90.1234 A manufacturing company has found that altering their process improves the quality of their product so that they have less waste per ton of raw material used to produce their product. The new process, however, requires more energy and more labor. Training, support and setup for the new process is required to make sure results will be consistent. The company believes the benefit will last four yoars before the product is obsolete in the rnarket. The company has a 13% hurdie rate for projects of this type (i.e, the required rate of return is 13\%) and requires a 28-month payback period. They are subject to a 21% tax rate. The initial investment consists of $93,113, all of which is a period expense (l.e., part of cash operating expenses in Year o). The net savings, including the effect of material consumption, labor, energy, etc., would $30498 per year for years 14. This amount would reduce cash operating oxpenses in the forecast years (creating a positive effect on operating income). What is the net present value of this proposal? Enter your answer as a monetary amount rounded to four decimal ploces, but without the currency symbol. For example, if your answer is $90. 1234 , enter 90.1234 . If you answer is less than zero, enter a negative value, lithe this: -90.1234 Type your ariswer. Ipoint A company wants to replace a machine with a better version. The replacement machine will require a net imvestment of $190,000 and is expected to generate free cash flow of $100,000 per year for the next 5 years. The company requires 12 Sireturn on capital investments of this sort and desires a 24 -month pay back period. The existing machine would continue to function for the next five years if it is not replaced, but igradualiy become less useful. Free cash flows for the existing machine are forecasted to be $80,000 in year 1,$60,000 in year 2,$40,000 in year 3,$20,000 in year 4 and $10,000 in year 5. How mary monthis is the pay back period for this proposal? Enter your answer as a number with two decimal places. For example, if your answer is 90.1234 , enter 90.12 A company wants to add a manufacturing machine to an existing factory to accommodate rising demand for their product. The factory is close to its effective capacity now, so the new machine will support sales which are expected to grow linearly during the next four years, topping out at $2,000,000 for years 4 and 5,$3 les for each year are forecasted to be: - Year 1: $500,000 - Year 2:\$1,000,000 - Year 3:\$1,500,000 - Year 4:\$2,000,000 - Year 5:$2,000,000 - Cash operating costs will be 70% of revenue for each year. The machine has an installed cost of $1,500,000, and will be depreciated straightline over 5 years assuming a 10% salvage value. The salvage arnount will also be included as part of the terminal value, representing the amount recaptured at the end of year 5 . There will be no tax effect in the salvage value because the book value is expected to be 10% of the historical cost at the end of yep 5. There will be no need for additional net working capital in the initial inwestment, but the need for net working capital will grow in proportion to sales growth, When capacity tops out at the end of year 4 , the total net working capital will be $60,000. This amount will be released in the final year as part of the terminal value. The company's WACC (weighted average cost of capital) is 9%, so this will be the required rate of return for this expansion. They also would like a 24 -month payback period so that capital will become available for other projects. They are subject to a 30% tax rate. What is the internal rate of return for this proposal? Enter your answer as o percentage with two decimal places, but without the percent symbol, For example, if your answer is 90,1234%, enter 90,12 A company wants to add a manufacturing machine to an existing factory to accommodate rising demand for their product. The factory is close to its effective capacity now, so the new machine will support sales which are expected to grow linearly during the next four years, topping out at $2,100,000 for years 4 and 5, Sales for each year are forecasted to be: - Year 1: $478,702 - Year 2: 5998.563 - Year 3:51,487,122 - Year 4:$2,100,000 - Year 5:\$2,100,000 - Cash operating costs will be 69% of revenue for each year. The machine has an installed cost of $1,236,986, and will be depreciated straightline over 5 years assuming a 9% salvage value. The salvage amount will also be included as part of the terminal value, representing the amount recaptured at the end of year 5 . There will be no tax effect in the salvage value because the book value is expected to be 9% of the historical cost at the end of year 5. There will be no need for additional net working capital in the initial investment, but the need for net working capital will grow in proportion to sales growth. When capacity tops out at the end of year 4 , the total net workingtapital will be $60,000. This amount will be released in the final year as part of the terminal value. The company's WACC (weighted average cost of capital) is 12%, so this will be the required rate of return for this expansion, They also would like a 31 -month payback period so that capital will become avaifable for other projects. They are subject to a 21% tax rate. What is the net present value of this proposal? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90,1234, enter 90.1234 . If you answer is less than zero, enter a negative value, like this:-90.1234 1 point A company wants to replace a machine with a better version. The replacement machine will require a net investment of $187.845 and is expected to generate free cast fiow of $86,450 per year for the next 5 years. The company requires 13% return on capital investments of this sort and desires a 24 -month pay back period, The existing machine would continue to function for the noxt five years if it is not replaced, but gradually become less useful. Free cash flows for the existing machine are forecasted to be $91,041 in year 1,$64,154 in year 2,$44,440 in year 3,$22,847 in year 4 and $10,248 in year 5 . What is the incremental cash flow for year 1 ? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For exampic, if your answer is $90.1234, enter 90.1234 . If you answer is less than zero, enter a negative value, like this: 90.1234 Typeyour answer. tpoint A company wants to replace a machine with a better version. The replacement machine will require a net investment of $150,319 and is expected to generate free cash flow of $87,595 per year for the next 5 years. The compary requires 13% return on capital investments of this sort and desires a 24 -month pay back period. The existing machine would continue to function for the next five years if it is not replaced, but gradually become less useful. Free cash flows for the existing machine are forecasted to be $92,628 in year 1,$55,273 in year 2,$33,159 in year 3,$16,905 in year 4 and $6,519 in year 5 . What is the net present value of this proposal? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 . If you answer is less than zero, enter a negative value, like this: =90.1234

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