Consider the following cash flow statement. A company is considering purchasing a machine that will produce 2,000 units with a unit sale price 50 $/unit. The unit variable cost is 15 $/unit and the total fixed cost is $10,000/Yr. The machine, which costs $125,000 will be needed for five years, after which it will have a salvage value of $40,000. The company use special-percentage depreciation with the rates (special: 0.1429, 0.2449, 0.1749, 0.1249, 0.0467) for next five years. Company will allocate $50,000 working capital. The tax rate is 40% and MARR is 15%. Compute the present worth value of the cash flows generated from this machine? Some required fields are calculated and you need to calculate the rest 0 1 2 3 4 5 50 50 50 50 50 2000 2000 2000 2000 2000 100000 100000 100000 100000 100000 15 30000 10000 15 30000 10000 15 30000 10000 15 30000 10000 15 30000 10000 Revenues: Unit Price Demand (units) Sales revenue Expenses: Unit variable cost Variable cost Fixed cost Depreciation Taxable Income Income taxes (40%) Net Income Depreciation Investment activities Investment Working capital Salvage Gains tax Net cash flow - 150000 -2611 Select one: a. 8822 b. 100000 c. 120000 calculate the rest. 0 1 2 3 5 50 50 50 50 50 2000 2000 2000 2000 2000 100000 100000 100000 100000 100000 15 30000 10000 15 30000 10000 15 30000 10000 15 30000 10000 15 30000 10000 Revenues: Unit Price Demand (units) Sales revenue Expenses: Unit variable cost Variable cost Fixed cost Depreciation Taxable Income Income taxes (40%) Net Income Depreciation Investment activities Investment Working capital Salvage Gains tax Net cash flow -150000 -2611 Select one: a. 8822 O b. 100000 c. 120000 d. 211090 e. 83506 f. 130410 Consider the following cash flow statement. A company is considering purchasing a machine that will produce 2,000 units with a unit sale price 50 $/unit. The unit variable cost is 15 $/unit and the total fixed cost is $10,000/Yr. The machine, which costs $125,000 will be needed for five years, after which it will have a salvage value of $40,000. The company use special-percentage depreciation with the rates (special: 0.1429, 0.2449, 0.1749, 0.1249, 0.0467) for next five years. Company will allocate $50,000 working capital. The tax rate is 40% and MARR is 15%. Compute the present worth value of the cash flows generated from this machine? Some required fields are calculated and you need to calculate the rest 0 1 2 3 4 5 50 50 50 50 50 2000 2000 2000 2000 2000 100000 100000 100000 100000 100000 15 30000 10000 15 30000 10000 15 30000 10000 15 30000 10000 15 30000 10000 Revenues: Unit Price Demand (units) Sales revenue Expenses: Unit variable cost Variable cost Fixed cost Depreciation Taxable Income Income taxes (40%) Net Income Depreciation Investment activities Investment Working capital Salvage Gains tax Net cash flow - 150000 -2611 Select one: a. 8822 b. 100000 c. 120000 calculate the rest. 0 1 2 3 5 50 50 50 50 50 2000 2000 2000 2000 2000 100000 100000 100000 100000 100000 15 30000 10000 15 30000 10000 15 30000 10000 15 30000 10000 15 30000 10000 Revenues: Unit Price Demand (units) Sales revenue Expenses: Unit variable cost Variable cost Fixed cost Depreciation Taxable Income Income taxes (40%) Net Income Depreciation Investment activities Investment Working capital Salvage Gains tax Net cash flow -150000 -2611 Select one: a. 8822 O b. 100000 c. 120000 d. 211090 e. 83506 f. 130410
