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Can someone help me solve this problem? Thank you! Johnnies Corp has the following information should this project be taken on ? Why? WACC=10.0% Marginal
Can someone help me solve this problem? Thank you!
Johnnies Corp has the following information should this project be taken on ? Why?
WACC=10.0%
Marginal Tax Rate= 40%
Working Capital as % of Yr. 1 Sales= 12.5%
Sales= $ 35,000
Variable Costs= $ 9,000
Equipment selling price at end of project= $ 15,000
New Equipment Cost= 30,000
Modification Costs=20,000
MACRS class5 years
Project ends in number of years= 4
Fixed Costs= 2,000
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