Gamma Electronics is considering the purchase of testing equipment that will cost $762,000 to replace old equipment Assume the new equipment will generate before tax savings of $275,000 per year over the four years The new equipment will result in additonal depreciation of $72,000 per year If the cost of capital is 10 and the tax rate is 30 , what is the NPV of the project Delta Pharmaceuticals has 315 million shares outstanding with a current market price of $39 per share Its stock changed to $30 on the news that Delta Pharmaceuticals long awaited new drug Zentac is to hit the market next month Whats the markets consensus of the NPV (in millions) that the new drug will generate for Delta Pharmaceuticals A firm has an investment opportunity requiring an initial investment of $111,000 Expected cash flows from the project are Yr 1 (30,000) Yr 2 40,000 Yr 3 60,000 Yr 4 70,000 If the cost of capital is 14 what is the NPV of this project 4 Grind Co is considering replacing an existing machine The new machine is expected to reduce labor costs by $101,000 per year for 5 years Depreciation on the new machine is $106,000 per year compared with $38,000 on the old machine In addition, inventory will increase from $250,000 at to $318,000 at and remain there until the end of the project The tax rate is 30 What is the relevant cash flow in year 2

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Gamma Electronics is considering the purchase of testing equipment that will cost $762,000 to replace old equipment. Assume the new equipment will generate before-tax savings

Gamma Electronics is considering the purchase of testing equipment that will cost $762,000 to replace old equipment. Assume the new equipment will generate before-tax savings of $275,000 per year over the four years. The new equipment will result in additonal depreciation of $72,000 per year. If the cost of capital is 10% and the tax rate is 30%, what is the NPV of the project.

Delta Pharmaceuticals has 315 million shares outstanding with a current market price of $39 per share. Its stock changed to $30 on the news that Delta Pharmaceuticals long-awaited new drug Zentac is to hit the market next month. Whats the markets consensus of the NPV (in millions) that the new drug will generate for Delta Pharmaceuticals?

A firm has an investment opportunity requiring an initial investment of $111,000. Expected cash flows from the project are: Yr 1: (30,000) Yr 2: 40,000 Yr 3: 60,000 Yr 4: 70,000 If the cost of capital is 14% what is the NPV of this project?

4. Grind Co. is considering replacing an existing machine. The new machine is expected to reduce labor costs by $101,000 per year for 5 years. Depreciation on the new machine is $106,000 per year compared with $38,000 on the old machine. In addition, inventory will increase from $250,000 at to $318,000 at and remain there until the end of the project. The tax rate is 30%. What is the relevant cash flow in year 2?