Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Johns Shipyards is considering the replacement of an Byearold riveting machine with a new one that increase earnings before depreciation from $24,000 to $46,000 per

Johns Shipyards is considering the replacement of an Byearold riveting machine with a new one that increase earnings before depreciation from \$24,000 to $46,000 per year. The new machine will cost 180, 000 , and an estimated of years and no salvage value. The new riveting machine for 100 % bancs deprecation . The applicable corporate tax rate %, and the firm's WACC 20. The old machine has been fully deprecated and no Salvage What is the NPV or the project? Negative value, any, should be indicated by a Hound your answer to the nearest cent Should the old machine replaced by one? -Select

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

Personal Finance

Authors: Jack Kapoor

13th Edition

1260799735, 9781260799736

More Books

Students also viewed these Finance questions

Question

=+b) What were the treatments?

Answered: 1 week ago

Question

Speak clearly and distinctly with moderate energy

Answered: 1 week ago

Question

Get married, do not wait for me

Answered: 1 week ago