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could someone answer these two questions please. The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $36. The unit cost

could someone answer these two questions please.

image text in transcribedimage text in transcribed The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $36. The unit cost of the giftware is $16. It is expected that net working capital will amount to 26% of sales in the following year. For example, the store will need an initial (year 0) investment in working capital of 0.2622,700$36=$212,472. Plant and equipment necessary to establish the giftware business will require an additional investment of $191,000. This investment will be depreciated in an asset class with a CCA rate of 25%. We will assume that the firm has other assets in this asset class. After 4 years, the equipment will have an economic and book value of zero. The firm's tax rate is 35%. The discount rate is 14%. What is the net present value of the project? (Round your answer to the nearest whole dollar amount.) Ilana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $1.09 million. The lathe will cost $30,200 to run, will save the firm $132,900 in labour costs, and will be useful for 11 years. Suppose that for tax purposes, the lathe will be in an asset class with a CCA rate of 25%. llana has many other assets in this asset class. The lathe is expected to have a 11 -year life with a salvage value of $91,000. The actual market value of the lathe at that time will also be $91,000. The discount rate is 7% and the corporate tax rate is 35%. What is the NPV of buying the new lathe? (Round your answer to the nearest cent.) The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $36. The unit cost of the giftware is $16. It is expected that net working capital will amount to 26% of sales in the following year. For example, the store will need an initial (year 0) investment in working capital of 0.2622,700$36=$212,472. Plant and equipment necessary to establish the giftware business will require an additional investment of $191,000. This investment will be depreciated in an asset class with a CCA rate of 25%. We will assume that the firm has other assets in this asset class. After 4 years, the equipment will have an economic and book value of zero. The firm's tax rate is 35%. The discount rate is 14%. What is the net present value of the project? (Round your answer to the nearest whole dollar amount.) Ilana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $1.09 million. The lathe will cost $30,200 to run, will save the firm $132,900 in labour costs, and will be useful for 11 years. Suppose that for tax purposes, the lathe will be in an asset class with a CCA rate of 25%. llana has many other assets in this asset class. The lathe is expected to have a 11 -year life with a salvage value of $91,000. The actual market value of the lathe at that time will also be $91,000. The discount rate is 7% and the corporate tax rate is 35%. What is the NPV of buying the new lathe? (Round your answer to the nearest cent.)

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