Question
Fred f stone wants to increase the production rate in the pebble tech manufacturing plant by adding a new machine calculate npv for the following
Fred f stone wants to increase the production rate in the pebble tech manufacturing plant by adding a new machine calculate npv for the following capital budgeting proposal $200,000 initial cost to be depreciated straight-line over five years to an expected salvage value of $10,000 resale value of the machine ex expected to be $11,000 it has a 35% tax rate $85,000 additional annual expense and $10,000 additional investment in working capital:
what would be the projected cash flow for year 0
-243,000
-200,000
-220,000
-210,000
what would be the projected cash flow for year 5
57,100
67,100
67,750
77,750
Step by Step Solution
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Step: 1
1 Projected cash flow for year 0 210000 2 Projected cash flow for year 5 67750 Stepb...Get Instant Access to Expert-Tailored Solutions
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Get StartedRecommended Textbook for
Statistics For Engineers And Scientists
Authors: William Navidi
3rd Edition
73376345, 978-0077417581, 77417585, 73376337, 978-0073376332
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