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Kima kirchen is considering buyijg a new fixture polisher. The new fixture polisher would be purchased today for $78000. It would be depreciated straighr line
Kima kirchen is considering buyijg a new fixture polisher. The new fixture polisher would be purchased today for $78000. It would be depreciated straighr line to $14,000 over 2 years. In 2 years the fixture polisher would be sold ans the after tax cash flow from capital spensinf in year 2 would be $7,000. The fixture polisher is expected to reduce costs by $58,000 in year 1 and bu $16,000 im year 2. if the tax rate is50% and the cost of capital is 17.60% what is the net present balue of the new fixture polisher project?
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