Question
I NEED HELP WITH QUESTIONS 2, 3, and 4. QUESTION 2 SEQUENCE TCJA-2. The Tax Cut and Jobs Act of 2017 lowered corporate tax rates
I NEED HELP WITH QUESTIONS 2, 3, and 4.
QUESTION 2 SEQUENCE TCJA-2. The Tax Cut and Jobs Act of 2017 lowered corporate tax rates from 34% to 2196. Additionally, many businesses were able to depreciate 100% of capital expenditures in Year1 under Section 179 of the tax code. Bramble Publishing Corporation is evaluating a capital expenditure. Annual sales of $9,000 and costs of $7,800 are anticipated. The planning horizon is 6 years. The project will require $2,345 in net working capital. The initial capital expenditure is $4,000. The project will be depreciated under Section 179. At the end of the project, there will be $1,606 pre-tax salvage value. The tax rate is 0.21. Venture capitalists backing this company expect a 0.11 rate of return. What is the NPV?
QUESTION 3 Goliath Power, Inc., is evaluating a project that would require an outlay of $40 million that would provide expected total cashflows thereafter of $6.5 million for 15 years. The cost of capital is 1196. What is the IRR in percent (##.## format)?
QUESTION 4 SEQUENCE TCJA-1. Bramble Publishing Corporation is evaluating a capital expenditure. Annual sales of $9,999 and costs of $7,777 are anticipated. The planning horizon is 6 years. The project will require $4,000 in net working capital. The initial capital expenditure is $3,800. The project will be depreciated using the MACRS-7 schedule. At the end of the project, there will be $1,600 pre-tax salvage value. The tax rate is 0.34. Venture capitalists backing this company expect a 0.18 rate of return. What is the NPV?
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