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A potential investment has a cost of $375,000 and a useful life of 6 years. Annual cash sales from the investment are expected to be

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A potential investment has a cost of $375,000 and a useful life of 6 years. Annual cash sales from the investment are expected to be $273.405 and annual cash operating expenses are expected to be $107,705. The expected salvage value at the end of the investment's life is $70,000. The company uses straight-line depreciation for all assets based on the full cost of the assets The company has a before-tax discount rate of 16%, an after-tax discount rate of 13%, and a tax rate of 25% 90 Required: 1. Assume the company wants to consider this investment before-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place ...055 = 5.5%). Enter negative amounts with a minus sign) Calculate the before-tax annual PMT of the investment Calculate the before-tax FV of the investment Calculate the before-tax NPV of the investment Calculate the before-tax IRR of the investment 2. Assume the company wants to consider this investment after tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place le 055 -5.5%). Enter negative amounts with a minus sign) Calculate the after-tax annual PMT of the investment Calculate the after tax FV of the investment Calculate the after-tax NPV of the investment Calculate the after tax IRR of the investment A manufacturing company makes two products. Up to the split-off point of Products F and Gjoint process costs are $53,600 a year Joint costs are allocated to the products based on their total sales values at the split-off point Both products may be sold at the split off point or processed further Product Product Total Allocated joint processing costs $ 20,300 $33,300 $ 53,600 Sales value at split-ott point 9 24,600 $30.550 $ 63,150 costs of further processing 524,000 $19.100 5.43.900 Sales value after further processing $49.000 559,500 $100, 500 Required: a. Calculate the financial advantage (disadvantage) of processing Product F beyond the split-off point. (Negative amount should be Indicated by a minus sign.) b. Calculate the financial advantage (disadvantage) of processing Product G beyond the split-off point. (Negative amount should be Indicated by a minus sign.) b

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