engegen.com ENGAGE MINDTAP End-of-Chapter Problems - Cash Flow Estimation and Risk Analysis kto Assignment Seuraa Average 16 - Problem 12.09 (New Project Analysis) eheer ou must evaluate a proposal to buy a new milling machine. The base price is $10,000, and sharing and in cants will adatter 516,000. The machines into the MICRS and would be so her years. The direct are 39%, 45%, 15%, and 74. The machine would require a 36.000 increase in net operating working capital increased inventory less read out at there would be no on revers, but a terme ud teeb.ere her rate is 35%, and the WACC is 111. Also, the form spent year investing by one machine 3. Mou should the $4,500 spent last year be handed? 1. Last year's expenditure is considered a sun cost and does not representas incremental cow. Hence, we needed in IL The cost of research is an incremental cash flow and should be included in the way. II. Only the tax effect of the researchers should be included in the ass TV a year's expenditure should te weted as a terminal cash flow and dealt with the end the petites, soldnt be induced in the start our V. Last year's expenditure is considered an copertunity cost and does not represent an incrementala now. The cluded in the eyes 6. What is the Antal investment outlay for the machine for capital budgeting this, whatever recome your weapotive value. Round your answer to the rear cant $ c. What are the projects annual caths curing Years 1, 2 und Dorot round Intermediate caround your time to the recent Year 1: 5 Ters Years & Should the machine te purchased Grade It Now Save & Continue Continue without saving V Lotion and Risk Analysis Ek to Assignment Average 16 . Problem 12.09 (New Project Analysis) ebook You must evaluate a proposal to buy a new miling machine. The base price is $101.000, and shipping and installation costs would add another 16.000. The machines in the MACRS 5-year, and it will be sold years for 700 are 3%, 45%, 15%, and 7%. The machine would require a 1,000 increase in net operating working capital increased inventory less increased accountable. There would be no effect on revenue, but prutas abertsoi de 15.000 per rate is 35%, and the WACC S 114. Also, the form spent $4.500 last year investigating they of using the machine a. How should the 14,500 spent last year be handed? Last year's expenditure is considered a sun cost and does not represent an incremental confow. Hence, it should not be included in the analysis 11. The cost of research is an incremental cash flow and should be included in the analysis II. Only the tax effect of the research expenses should be included in the analysis IV. Last year's expenditure should be treated as a terminal can flow and dealt with at the end of the projects, should not be nuded in the instal investment to Last year's expenditure is considered an opportunity cost and does not represent an incremental cash flow. Hence, it behouded in the analys b. What is the initial investment outlay for the machine for captal budgeting purposes, that is what is the project for your anime apotive value. Hound your answer to the east cont. 5 c. What are the project's annual cathows during Years 1, 2, and 27 Donost round trecuta calculation. Round your answers to the nearest cen. Yearls Year 21 Year: d. Should the machine be purchased Grade it Now Save & Continue Continue without saving tv 29 engegen.com ENGAGE MINDTAP End-of-Chapter Problems - Cash Flow Estimation and Risk Analysis kto Assignment Seuraa Average 16 - Problem 12.09 (New Project Analysis) eheer ou must evaluate a proposal to buy a new milling machine. The base price is $10,000, and sharing and in cants will adatter 516,000. The machines into the MICRS and would be so her years. The direct are 39%, 45%, 15%, and 74. The machine would require a 36.000 increase in net operating working capital increased inventory less read out at there would be no on revers, but a terme ud teeb.ere her rate is 35%, and the WACC is 111. Also, the form spent year investing by one machine 3. Mou should the $4,500 spent last year be handed? 1. Last year's expenditure is considered a sun cost and does not representas incremental cow. Hence, we needed in IL The cost of research is an incremental cash flow and should be included in the way. II. Only the tax effect of the researchers should be included in the ass TV a year's expenditure should te weted as a terminal cash flow and dealt with the end the petites, soldnt be induced in the start our V. Last year's expenditure is considered an copertunity cost and does not represent an incrementala now. The cluded in the eyes 6. What is the Antal investment outlay for the machine for capital budgeting this, whatever recome your weapotive value. Round your answer to the rear cant $ c. What are the projects annual caths curing Years 1, 2 und Dorot round Intermediate caround your time to the recent Year 1: 5 Ters Years & Should the machine te purchased Grade It Now Save & Continue Continue without saving V Lotion and Risk Analysis Ek to Assignment Average 16 . Problem 12.09 (New Project Analysis) ebook You must evaluate a proposal to buy a new miling machine. The base price is $101.000, and shipping and installation costs would add another 16.000. The machines in the MACRS 5-year, and it will be sold years for 700 are 3%, 45%, 15%, and 7%. The machine would require a 1,000 increase in net operating working capital increased inventory less increased accountable. There would be no effect on revenue, but prutas abertsoi de 15.000 per rate is 35%, and the WACC S 114. Also, the form spent $4.500 last year investigating they of using the machine a. How should the 14,500 spent last year be handed? Last year's expenditure is considered a sun cost and does not represent an incremental confow. Hence, it should not be included in the analysis 11. The cost of research is an incremental cash flow and should be included in the analysis II. Only the tax effect of the research expenses should be included in the analysis IV. Last year's expenditure should be treated as a terminal can flow and dealt with at the end of the projects, should not be nuded in the instal investment to Last year's expenditure is considered an opportunity cost and does not represent an incremental cash flow. Hence, it behouded in the analys b. What is the initial investment outlay for the machine for captal budgeting purposes, that is what is the project for your anime apotive value. Hound your answer to the east cont. 5 c. What are the project's annual cathows during Years 1, 2, and 27 Donost round trecuta calculation. Round your answers to the nearest cen. Yearls Year 21 Year: d. Should the machine be purchased Grade it Now Save & Continue Continue without saving tv 29