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Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $ 1 , 8 0 0
Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $ and sell its old washer for $ The new washer will last for years and save $ a year in expenses. The opportunity cost of capital is and the firms tax rate is a If the firm uses straightline depreciation over a year life, what are the cash flows of the project in years to The new washer will have zero salvage value after years, and the old washer is fully depreciated. b What is project NPV c What is NPV if the firm investment is entitled to immediate bonus depreciation?
Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $ and sell its old washer for $ The new washer will last for years and save $ a year in expenses. The opportunity cost of capital is and the firms tax rate is
a If the firm uses straightline depreciation over a year life, what are the cash flows of the project in years to The new washer will have zero salvage value after years, and the old washer is fully depreciated.
b What is project NPV
c What is NPV if the firm investment is entitled to immediate bonus depreciation?
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