Question
A piece of newly purchased industrial equipment costs $745,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in the
A piece of newly purchased industrial equipment costs $745,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in the MACRS Table. Fill in the following table. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank. Enter "0" when necessary.) |
Year | Cash Flow | |||
0 | $ | 32,000 | ||
1 | 14,700 | |||
2 | 17,000 | |||
3 | 12,100 | |||
a. | What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) |
b. | What is the NPV at a discount rate of 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
c. | What is the NPV at a discount rate of 21 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
d. | What is the NPV at a discount rate of 30 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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