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Apothic Inc. is nestled in the beautiful Kelowna, B.C. It is considering the purchase of ten hydraulic ice wine press machines for a total price
Apothic Inc. is nestled in the beautiful Kelowna, B.C. It is considering the purchase of ten hydraulic ice wine press machines for a total price of $325,000. The firm's old press machines have a book value of $85,000, but can only be sold for $60,000. The new hydraulic press machines are estimated to attract additional customers and will generate annual revenue of $62,000 for the first 6 years and decreasing slightly to $58,000 per year for the next 4 years. Operating expenses will be 20% of the revenue each year. Working capital of $28,000 will have to be injected at the start of operations to support sales. At the end of 6 years, a capital upgrade will cost $15,000. At the end of year 10 , the press machines can be salvaged for $42,000. The PV CCA came to $66,275. Apothic Inc. is in the 40% tax bracket and has 12% cost of capital. Given the above information (click here to access Excel): 1. Total cash flow occurs in year 0 is: 2. PV for upgrade is: 3. The PV for revenue from year 1 to year 6 is: 4. The PV at year 0 for revenue from year 7 to year 10 is: 5. The PV for expenses from year 1 to year 6 is: 6. The PV at year 0 for expenses from year 7 to year 10 is: 7. PV for salvage is: 8. PV for W.C. recovery is: 9. PVCCA is: 1. Total cash flow occurs in year 0 is: 2. PV for upgrade is: 3. The PV for revenue from year 1 to 4. The PV at year 0 for revenue from year / to year 10 5. The PV for expenses from year 1 to year 6 is: 6. The PV at year 0 for expenses from year 7 to year 10 is: 7. PV for salvage is: 8. PV for W.C. recovery is: 9. PVCCA is: 2. PV for upgrade is: 3. The PV for revenur lear 6 is: 4. The PV at year 0fi lear 7 to year 10 is: 5. The PV for expens year 6 is: 6. The PV at year 0 for expenses from year 7 to year 10 is: 7. PV for salvage is: 8. PV for W.C. recovery is: 9. PVCCA is: 3. The PV for revenue from year 1 to year 6 is: 4. The PV at year 0 for revenue from year 7 to year 10 is: 5. The PV for expenses from year 1 to year 6 is: 6. The PV at year 0 for expenses from year 7 to year 10 is 7. PV for salvage is: 8. PV for W.C. recovery is: 2. PV for upgrade is: 3. The PV for revenue from year 1 to year 6 is: 4. The PV at year 0 for revenue from year 7 to year 10 is: 5. The PV for expenses from year 1 to year 6 is: 6. The PV at year 0 for expenses from year 7 to 7. PV for salvage is: 8. PV for W.C. recovery is: 9. PVCCA is: 3. The PV for revenue from year 1 to year 6 is: 4. The PV at year 0 for revenue from year 7 to year 10 is 5. The PV for expenses from year 1 to year 6 is: 6. The PV at year 0 for expenses from year 7 to year 10 is: 7. PV for salvage is: 8. PV for W.C. recovery is: 9. PVCCA is: 3. The PV for revenue from year 1 to year 6 is: 4. The PV at year 0 for revenue from year 7 to year 10 is: 5. The PV for expenses from year 1 to year 6 is: 6. The PV at year 0 for expenses from year 7 to year 10 is: 7. PV for salvage is: 8. PV for W.C. recovi 4. The PV at year 0 for revenue from year / to year 10 is: 5. The PV for expenses from year 1 to year 6 is: 6. The PV at year 0 for expenses from year 7 to year 10 is: 7. PV for salvage is: 8. PV for W.C. recovery is: 9. PVCCA is: Please answer all parts of the 6. The PV at year 0 for expenses from year 7 to year 10 is: 7. PV for salvage is: 8. PV for W.C. recovery is: 9. PVCCA is: Please answer all estion
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