Calculate the npv of this project?
pretax cost savings ?
a b c calculate the project npv
what is the minimum number of ....
what is the highest costs that could be incurred?
Edit View History Bookmarks People Window Help rk #04 X Bb Announcements - 31015.2019( x H s:/ewconnect.mheducation.com/flow/connect.html rk #04 Saved Market Top Investors, Inc., is considering the purchase of a $340,000 computer with an economic life of five years. The computer will be fully depreciated over five years using the straight-line method, at which time it will be worth $48,000. The computer will replace two office employees whose combined annual salaries are $84,000. The machine will also immediately lower the firm's required net working capital by $73,000. This amount of net working capital will need to be replaced once the machine is sold. The corporate tax rate is 23 percent. The appropriate discount rate is 10 percent. Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV Is it worthwhile to buy the computer? O NO O Yes dit View History Bookmarks People Window Help #04 X Bb Announcements - 31015.20194 X s:/ewconnect.mheducation.com/flow/connect.html k #04 G Saved A proposed cost-saving device has an installed cost of $745,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $155,000, the marginal tax rate is 25 percent, and the project discount rate is 13 percent. The device has an estimated Year 5 salvage value of $110,000. What level of pretax cost savings do we require for this project to be profitable? MACRS schedule. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Pretax cost savings K We....xIsx A 729 MAR M 31 -(30)Bulov Bulov X a Amaz X bulove x Bulov -> C https:/ewconnect.mheducation.com/flow/connect.html Homework #04 Gi Saved 8 The technique for calculating a bid price can be extended to many other types of problems. Answer the following questions using the same technique as setting a bid price; that is, set the project NPV to zero and solve for the variable in question. Guthrie Enterprises needs someone to supply it with 155,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to 10 bid on the contract. It will cost $1,950,000 to install the equipment necessary to start points production; you'll depreciate this cost straight-line to zero over the project's life. You estimate that in five years this equipment can be salvaged for $165,000. Your fixed Skipped production costs will be $280,000 per year, and your variable production costs should be $10.90 per carton. You also need an initial investment in net working capital of $145,000. The tax rate is 25 percent and you require a return of 14 percent on your eBook investment. Assume that the price per carton is $17.50. Print a. Calculate the project NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the minimum number of cartons per year that can be supplied and still break even? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What is the highest fixed costs that could be incurred and still break even? (Do not 32.16.) round intermediate calculations and round your answer to 2 decimal places, e.g., NPV Quantity of cartons Fixed costs
