Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gurchase of a new se68,000 computer based order entry system. The system wll be depreciated straight-line to zero over its six-year life. It will be

image text in transcribed
image text in transcribed
Gurchase of a new se68,000 computer based order entry system. The system wll be depreciated straight-line to zero over its six-year life. It will be beginning of the project. Working capital will revert back to normal at the end of your frm is contemplating the worth $55,000 at the end of that time. You will the project Assume the tax rate is 35 percent be able to reduce working capital by $50,000 at the What is the atertax salvage value of the equipment? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g. 32.) Buppose your requined retum on the project is 9 percent and your pretax cost savings are $205,000 per year what is the aneual OCF? (Do not round intermediate calculations and round your answer to the nearest whole number,e.g 32.) OCF S 172275 What is the NPV of the project? (Do not round Intermediate calculations and round your answer to 2 declimal NPV Suppose your required return on the pr What is te anual OCF7(Do not round intermediate calculations and round your answer to the nearest whole number, 0.9-32) oject is 9 percent and your pretax cost savings are $145,000 per year $ 133275 s the NPV of the project? (Do not round your answer to 2 decimal 32.16

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations In Personal Finance

Authors: Dave Ramsey

College Edition

1936948001, 978-1936948000

More Books

Students also viewed these Finance questions

Question

List the five steps in the decision-making model.

Answered: 1 week ago