Question
Fact Set of a Capital Budgeting Project: ALL FIGURES ARE IN THOUSANDS OF $. Mechanical Robot = $ 200.00 Installation + Training= $ 20.00 Robot's
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Fact Set of a Capital Budgeting Project:
ALL FIGURES ARE IN THOUSANDS OF $.
Mechanical Robot =
$ 200.00
Installation + Training=
$ 20.00
Robot's Life in Yrs=
5
Salvage Value =
0
ST Investment=
$ 50.00
ST Investment Recovery=
20%
Marginal Revenue/yr =
$ 100.00
Marginal Exp/yr=
$ 20.00
Marginal Tax Rate =
21%
Discount Rate =
10%
USE Straight Line Depreciation to a Book Value of Zero. Installation and Training Costs along with Cost of Robots are Depreciable.
According to your calculations, THE NPV for this project in Thousands of Dollars is:
a. $ 23.99
b. $18.77
c. $44,399
d. $ 68,237
e. $102.70
f. $ 12.57
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
