Hello!

In need of urgent help. I am going through some study questions and have mastered the majority of the quiz topics but, am completely stuck on a particular section. Can you please assist? Below are the questions. The answer is visible but I am specifically looking for how to get to that answer.

Many thanks,

Dilaine

Question 14

0 / 1 point

Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $908000 is estimated to result in $228000 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $93000. The press also requires an initial investment in spare parts inventory of $55000, along with an additional $5900 in inventory for each succeeding year of the project. If the shop's tax rate is 0.39and its discount rate is 0.10, what is the total cash flow in year 2? (Do not round your intermediate calculations.)

(Make sure you enter the number with the appropriate +/- sign)

Answer:

(246498.40)

Question 15

0 / 1 point

Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $944000 is estimated to result in $184000 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $131000. The press also requires an initial investment in spare parts inventory of $40000, along with an additional $12500 in inventory for each succeeding year of the project. If the shop's tax rate is 0.23and its discount rate is 0.10, what is the total cash flow in year 3? (Do not round your intermediate calculations.)

(Make sure you enter the number with the appropriate +/- sign)

Answer:

(170867.04)

Question 16

0 / 1 point

Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $593000 is estimated to result in $244000 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $87000. The press also requires an initial investment in spare parts inventory of $76000, along with an additional $10100 in inventory for each succeeding year of the project. If the shop's tax rate is 0.38and its discount rate is 0.14, what is the change in NWC in year 4? (Do not round your intermediate calculations.)

(Make sure you enter the number with the appropriate +/- sign)

Answer:

(106300.00)

Question 17

0 / 1 point

Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $915000 is estimated to result in $239000 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $134000. The press also requires an initial investment in spare parts inventory of $58000, along with an additional $7200 in inventory for each succeeding year of the project. If the shop's tax rate is 0.33and its discount rate is 0.09, what is the operating cash flow in year 4? (Do not round your intermediate calculations.)

(Make sure you enter the number with the appropriate +/- sign)

Answer:

(194914.64)

Question 18

1 / 1 point

Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $594000 is estimated to result in $223000 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $109000. The press also requires an initial investment in spare parts inventory of $50000, along with an additional $6500 in inventory for each succeeding year of the project. If the shop's tax rate is 0.39and its discount rate is 0.08, what is the salvage value net of tax (SVNOT) in year 4? (Do not round your intermediate calculations.)

(Make sure you enter the number with the appropriate +/- sign)

Answer:

106520.85

Question 19

0 / 2 points

Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $640000 is estimated to result in $163000 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $87000. The press also requires an initial investment in spare parts inventory of $75000, along with an additional $12900 in inventory for each succeeding year of the project. If the shop's tax rate is 0.33and its discount rate is 0.08, what is the total cash flow in year 4? (Do not round your intermediate calculations.)

(Make sure you enter the number with the appropriate +/- sign)

Answer:

(342025.60)