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DSSS Corporation DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufacturing equipment is $135,000. The cost of shipping and

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DSSS Corporation DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufacturing equipment is $135,000. The cost of shipping and installation is an additional $14,500. The asset will fall into the 3 year MACRS class. The year 1-4 MACRS percentages are 33 33%, 44.45%, 14 81% and 7.41%, respectively, Sales are expected to be $230,000 per year Cost of goods sold will be 65% of sales. The project will require an increase in net working capital of $14,500. At the end of three years, DSSS plans on ending the project and selling the manufacturing equipment for $30,000. The marginal tax rate is 35% and DSSS Corporation's appropriate discount rate is 14% The fixed expenses is $12,000 Refer to DSSS Corporation. What is the initial investment outlay for this project? $164000 O $154,000 O $174,000 $25,000 DSSS Corporation DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufacturing equipment is $135,000 The cost of shipping and installation is an additional $14,500. The asset will fall into the 3-year MACRS class. The year 1-4 MACRS percentages are 33 33%, 44 45%, 14 81%, and 7 41%, respectively Sales are expected to be $230,000 per year Cost of goods sold will be 65% of sales. The project will require an increase in net working capital of $14,500. At the end of three years, DSSS plans on ending the project and selling the manufacturing equipment for $30,000. The marginal tax rate is 35% and DSSS Corporation's appropriate discount rate is 14%. The fixed expenses is $12,000 Refer to DSSS Corporation. What is the book value of the machine at the end of year 4? O $22,141 $11,078 O $66,453 O $49,828

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