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Easy - Chair Corp. is considering replacing its existing equipment that is used to produce comfort recline chairs. This existing equipment was purchase 2 years
EasyChair Corp. is considering replacing its existing equipment that is used to produce comfort recline chairs. This existing equipment was purchase years ago at a base price of $ Installation costs at the time for this old equipment were $ The existing equipment is considered a year class for MACRS. The existing equipment can be sold today for $ and for $ in years. The new equipment has a purchase price of $ and is also considered a year class for MACRS. Installation costs for the new equipment are $ It is estimated that this equipment can be sold in years end of project for $ This new equipment is more efficient than the existing one and thus savings before taxes using the new machine are $ a year. This new equipment will also require additional working capital today of $; this investment will be recovered at the end of the project in year The company's marginal tax rate is and the cost of capital is
What is the NPV of this replacement project? The following questions reach the value for the answer.
MACRS Fixed Annual Expense Percentages by Recovery Class
Year Year Year Year Year Year
For your answer, round to the nearest dollar, do not enter the $ sign, use commas to separate thousands, use a negative sign in front of first number is the cash flow is negative do not use parenthesis to indicate negative cash flows For example, if your answer is $ then enter ; if your answer is $ then enter
What is the initial outlay I for this project the project cash flows at time
What is the free cash flow FCF for year of this replacement project?
What is the free cash flow FCF for year of this replacement project?
What is the net operating profit plus incremental depreciation for year of this replacement project?
What is the free cash flow FCF for year of this replacement project?
What is the NPV of this replacement project?
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