Question
Consider the following debt-free project for a machine: Physical Lifespan 7 years Capital Expense, Year 0 $14,000 EBITDA / Year $8,000 Cost of Capital 9.9%
Consider the following debt-free project for a machine:
| Physical Lifespan | 7 years |
|---|---|
| Capital Expense, Year 0 | $14,000 |
| EBITDA / Year | $8,000 |
| Cost of Capital | 9.9% |
| Tax Rate | 39% |
| Depreciation Life | 4 years |
What is the value of this project?
Carry out calculations to at least 4 decimal places. Enter percentages as whole numbers. Example: 3.03% should be entered as 3.03. Do not include commas or dollar signs in numerical answers.
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Investments Analysis And Management
Authors: Charles Jones, Nick Jones
11th Edition
0470477121, 9780470477120
