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answer please You must evaluate a proposal to buy a new pizza oven To Pistol Pete's Plaza Palace. The base price is $108.000, and shipping
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You must evaluate a proposal to buy a new pizza oven To Pistol Pete's Plaza Palace. The base price is $108.000, and shipping and installation costs would add another $12,500. The equipment falls into the MACRS 3-year class, and it would be sold after 3 years for $65,000. The applicable depreciation rates are 33%, 45%, 15% and 7%. The machine would require a $5,500 increase in net operating working capital increasing inventory less increased accounts payable. There would be no effect or revenues, but pretax abor cost would decline by $44,000 per year. The marginal tax rate is 35%, and the WACC is 12% Also, the firm spent $5,000 last year investigating the feasibility of using the machine What is the Terminal Cash flow for the project int Salvage Value Max. on Salvage value and NOWCStep by Step Solution
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