Question
Answer the following about Scholastic Co: A. Scholastic Co.is evaluating different equipment. Machine A costs $85,000 per year has a four-year life, and costs $45,000
Answer the following about Scholastic Co:
A. Scholastic Co.is evaluating different equipment. Machine A costs $85,000 per year has a four-year life, and costs $45,000 per year to operate.The machine will be depreciated using straight-line and the relevant discount rate is 8%.The machine will have a salvage value of $20,000 at the end of the project's life. The firm has a tax rate of 21%.Calculate the operating cash flow in year 1. (Enter a negative value)
B. Scholastic Co.is evaluating different equipment. Machine A costs $85,000 per year has a four-year life, and costs $45,000 per year to operate.The machine will be depreciated using straight-line and the relevant discount rate is 8%.The machine will have a salvage value of $20,000 at the end of the project's life. The firm has a tax rate of 21%.Calculate the NPV of the project.(Enter a negative value and round to 2 decimals)
C. Scholastic Co.is evaluating different equipment. Machine A costs $85,000 per year has a four-year life, and costs $45,000 per year to operate.The machine will be depreciated using straight-line and the relevant discount rate is 8%.The machine will have a salvage value of $20,000 at the end of the project's life. The firm has a tax rate of 21%.Calculate the EAC for the project.(Enter apositivevalue and round to 2 decimals)
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