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Emergency studying and cant figure out #20 please answer ASAP an initial investment in net wk ,000.IT You also need ng capitai your tax tment,

Emergency studying and cant figure out #20 please answer ASAP image text in transcribed
an initial investment in net wk ,000.IT You also need ng capitai your tax tment, what bi is 35 percent and you require a return of 12 percent on price should you submit? E 19. Cost-Cutting Proposals [LO2] Warmack Machine Shop iconsidering a fore 0) year project to improve its production efficiency. Buying a rew machin $410,000 is estimated to result in $155,000 in annual pretax cost savings. The preu falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $55,000. The press also requires an initial investment in spare parts inven tory of $20,000, along with an additional $3,100 in inventory for each succeeding year of the project. If the shop's tax rate is 35 percent and its discount rate is 9 per cent, should the company buy and install the machine press? press for 20. Comparing Mutually Exclusive Projects [LO1] Lang Industrial Systems Com- pany (LISC) is trying to decide between two different conveyor belt systems. System A costs $290,000, has a four-year life, and requires $80,000 in pretax annual oper ating costs. System B costs $375,000, has a six-year life, and requires $74,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. If the tax rate is 34 percent and the discount rale is 8 percent, which project should the firm choose? Comparing Mutually Exclusive Projects [LO4] Suppose in the previous problen that LISC always needs a conveyor belt system; when one wears out, it mus replaced. Which project should the firm choose now? Calculating a Bid Price [LO3] Consider a project to supply stamps per year to the U.S. Postal Service for th 2 21. 22. 100 million postage

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