Alternative depreciation methods; NPV Kansas Salt CO. is considering an investment in computer-based pro from operations. Cost of installation and training is considered nom a. 1. If Kansas Salt Co. uses straight-line depreciation for tax purpo Note: Round your final answer to the nearest whole dollar. 2. Should the company make this investment based on the result depreciation methods; NPV o. is considering an investment in computer-based production technolof ns. Cost of installation and training is considered nominal. The equipm It Co. uses straight-line depreciation for tax purposes, calculate the ur final answer to the nearest whole dollar. pany make this investment based on the results of part (1)? er-based production technology as part of a business reengineering pro idered nominal. The equipment will have no salvage value at the end x purposes, calculate the net present value of the investment. results of part (1)? of a business reengineering process. The necessary equipmen e no salvage value at the end of its eight-year estimated life. process. The necessary equipment will cost $10,800,000, have a nd of its eight-year estimated life. The company's tax rate and co pment will cost $10,800,000, have a life of eight years, and generat life. The company's tax rate and cost of capital are, respectively, 3 and generate annual net before-tax cash flows of $1,860,000 spectively, 30 percent and 5 percent. a. 1. If Kansas Salt Co. uses straight-line depreciation for tax purposes, cal Note: Round your final answer to the nearest whole dollar. 2. Should the company make this investment based on the results of b. Assume that the tax law allows the company to take accelerated a What is the net present value of the equipment? straight-line depreciation for tax purposes, calculate the net present value of the investment ver to the nearest whole dollar. his investment based on the results of part (1)? the company to take accelerated annual depreciation on this asset in the followin the equipment? e nearest whole dollar. 2. Should the company make this investment based on the b. Assume that the tax law allows the company to take accelerated annual depreciation 0 Years 12 23\% of cost Years 38 9\% of cost 1. What is the net present value of the equipment? Note: Round your final answer to the nearest whole dollar. 2. Should the company make this investment based on the results of part (1)? : Recompute (a) assuming the tax rate is increased to 40 percent. What is the net present value of the equipment? Denund inu final answer to the nearest whole dollar. 2. Should the company make this investment based on the results of part (1)? c. Recompute (a) assuming the tax rate is increased to 40 percent. 1. What is the net present value of the equipment? Note: Round your final answer to the nearest whole dollar. 2. Should the company make this investment based on the results of part (1)? d. Recompute (b) assuming the tax rate is increased to 40 percent. What is the net present value of the equipment? 2. Should the company make this investment based on the results of part (1)? d. Recompute (b) assuming the tax rate is increased to 40 percent. 1. What is the net present value of the equipment? Note: Round your final answer to the nearest whold dollar. 2. Should the company make this investment based on the results of part ( Alternative depreciation methods; NPV Kansas Salt CO. is considering an investment in computer-based pro from operations. Cost of installation and training is considered nom a. 1. If Kansas Salt Co. uses straight-line depreciation for tax purpo Note: Round your final answer to the nearest whole dollar. 2. Should the company make this investment based on the result depreciation methods; NPV o. is considering an investment in computer-based production technolof ns. Cost of installation and training is considered nominal. The equipm It Co. uses straight-line depreciation for tax purposes, calculate the ur final answer to the nearest whole dollar. pany make this investment based on the results of part (1)? er-based production technology as part of a business reengineering pro idered nominal. The equipment will have no salvage value at the end x purposes, calculate the net present value of the investment. results of part (1)? of a business reengineering process. The necessary equipmen e no salvage value at the end of its eight-year estimated life. process. The necessary equipment will cost $10,800,000, have a nd of its eight-year estimated life. The company's tax rate and co pment will cost $10,800,000, have a life of eight years, and generat life. The company's tax rate and cost of capital are, respectively, 3 and generate annual net before-tax cash flows of $1,860,000 spectively, 30 percent and 5 percent. a. 1. If Kansas Salt Co. uses straight-line depreciation for tax purposes, cal Note: Round your final answer to the nearest whole dollar. 2. Should the company make this investment based on the results of b. Assume that the tax law allows the company to take accelerated a What is the net present value of the equipment? straight-line depreciation for tax purposes, calculate the net present value of the investment ver to the nearest whole dollar. his investment based on the results of part (1)? the company to take accelerated annual depreciation on this asset in the followin the equipment? e nearest whole dollar. 2. Should the company make this investment based on the b. Assume that the tax law allows the company to take accelerated annual depreciation 0 Years 12 23\% of cost Years 38 9\% of cost 1. What is the net present value of the equipment? Note: Round your final answer to the nearest whole dollar. 2. Should the company make this investment based on the results of part (1)? : Recompute (a) assuming the tax rate is increased to 40 percent. What is the net present value of the equipment? Denund inu final answer to the nearest whole dollar. 2. Should the company make this investment based on the results of part (1)? c. Recompute (a) assuming the tax rate is increased to 40 percent. 1. What is the net present value of the equipment? Note: Round your final answer to the nearest whole dollar. 2. Should the company make this investment based on the results of part (1)? d. Recompute (b) assuming the tax rate is increased to 40 percent. What is the net present value of the equipment? 2. Should the company make this investment based on the results of part (1)? d. Recompute (b) assuming the tax rate is increased to 40 percent. 1. What is the net present value of the equipment? Note: Round your final answer to the nearest whold dollar. 2. Should the company make this investment based on the results of part (
