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Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $200,000 and sell its old low- pressure
Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball for $200,000 and sell its old low- pressure glueball, which is fully depreciated, for $36,000. The new equipment has a 10-year useful life and will save $44,000 a year in expenses. The opportunity cost of capital is 8%, and the firm's tax rate is 21%. What is the equivalent annual saving from the purchase if Gluon can depreciate 100% of the investment immediately. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Equivalent annual savings A firm had after-tax income last year of $3.6 million. Its depreciation expenses were $0.3 million, and its total cash flow was $3.6 million. What happened to net working capital during the year? (Enter your answer in millions rounded to 1 decimal place.) Net working capital million
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