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Davis Pizza is analyzing the prospect of purchasing an additional fire - brick oven. The oven costs $ 2 0 0 , 0 0 0
Davis Pizza is analyzing the prospect of purchasing an additional firebrick oven. The oven costs $ and would be depreciated straightline to a salvage value of $ in ten years. The extra oven would increase annual revenue by $ and annual operating expenses by $ Davis marginal tax rate is Show your calculations. AWhat would be the annual freecash flow generated by the new oven? $ BWhat is the payback period for the additional oven? payback period of years CSuppose the required rate of return is what is the net present value of the additional oven? NPV cash flow r t Initial investment $ $ NPV $ DWhat is the profitability index for the additional oven? $ profitability index of EWhat is the internal rate of return of the additional oven? ONLY NEED THIS PART ANSWERED PLEASE SHOW WORK WITHOUT EXCEL
Davis Pizza is analyzing the prospect of purchasing an additional firebrick oven. The oven costs $ and would be depreciated straightline to a salvage value of $ in ten years. The extra oven would increase annual revenue by $ and annual operating expenses by $ Davis marginal tax rate is Show your calculations.
AWhat would be the annual freecash flow generated by the new oven?
$
BWhat is the payback period for the additional oven?
payback period of years
CSuppose the required rate of return is what is the net present value of the additional oven?
NPV cash flow r t Initial investment
$ $
NPV $
DWhat is the profitability index for the additional oven?
$
profitability index of
EWhat is the internal rate of return of the additional oven? ONLY NEED THIS PART ANSWERED PLEASE SHOW WORK WITHOUT EXCEL
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