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Mars Inc. is considering a 5 - year project that requires a new machine that costs $ 6 6 , 0 0 0 , and
Mars Inc. is considering a year project that requires a new machine that costs $ and an additional net working capital of $ which will be recovered when the project ends in years. This project would increase the firm's revenues by $ per year and its operating costs by $ per year. Mars will use the year MACRS to depreciate the machine, and it expects to sell the machine at the end of the project for $ The firm's marginal tax rate is percent, and the project's cost of capital is percent. What is the net cash flow at year the final year? MACRS year schedule is as follows: and for years to respectively. Question options: $ $ $ $ $ $ The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $ and it falls into the MACRS year class. Purchase of the computer would require an increase in net operating working capital of $ The computer would increase the firm's beforetax revenues by $ per year but would also increase operating costs by $ per year. The computer is expected to be used for years and then be sold for $ The firm's marginal tax rate is percent, and the project's cost of capital is percent. What is the operating cash flow in Year Round it to a whole dollar, and do not include the $ sign. Year MACRS Percent
Mars Inc. is considering a year project that requires a new machine that costs $ and an additional net working capital of $ which will be recovered when the project ends in years. This project would increase the firm's revenues by $ per year and its operating costs by $ per year. Mars will use the year MACRS to depreciate the machine, and it expects to sell the machine at the end of the project for $ The firm's marginal tax rate is percent, and the project's cost of capital is percent. What is the net cash flow at year the final year? MACRS year schedule is as follows: and for years to respectively.
Question options:
$
$
$
$
$
$
The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $ and it falls into the MACRS year class. Purchase of the computer would require an increase in net operating working capital of $ The computer would increase the firm's beforetax revenues by $ per year but would also increase operating costs by $ per year. The computer is expected to be used for years and then be sold for $ The firm's marginal tax rate is percent, and the project's cost of capital is percent.
What is the operating cash flow in Year Round it to a whole dollar, and do not include the $ sign.
Year MACRS
Percent
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