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Mellow Foods is considering replacing all 12 of its meat scales with new, digital ones. la Click the icon to view additional information.) Present Value

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Mellow Foods is considering replacing all 12 of its meat scales with new, digital ones. la Click the icon to view additional information.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Given the preceding information, what is the net present value of the new scales? Ignore taxes. (Round intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) The net present value is $ 43,470 Requirement 2. Assume the $35,000 cost savings are in current real dollars and the inflation rate is 4%. Recalculate the NPV of the project. (Round the nominal rate to the nearest whole percentage, and cumulati- inflation rates to three decimal places, X.XXX. Round monetary intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negativ net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) Assuming an inflation rate of 4%, The net present value is $ Enter any number in the edit fields and then click Check Answer. Requirements More Info 1. 2. 3. Given the preceding information, what is the net present value of the new scales? Ignore taxes. Assume the $35,000 cost savings are in current real dollars and the inflation rate is 4%. Recalculate the NPV of the project. Based on your answers to requirements 1 and 2, should Mellow Foods buy the new meat scales? Now assume that the company's tax rate is 35%. Calculate the NPV of the project assuming no inflation. Again assuming that the company faces a 35% tax rate, calculate the NPV of the project under an inflation rate of 4%. Based on your answers to requirements 4 and 5, should Mellow Foods buy the new meat scales? The old scales are fully depreciated and have no disposal value. The new scales cost $140,000 (in total). Because the new scales are more efficient and more accurate than the old scales, Fancy Foods will have annual incremental cash savings from using the new scales in the amount of $35,000 per year. The scales have a 6-year useful life and no terminal disposal value and are depreciated using the straight-line method. Fancy Foods requires a 4% real rate of return. 4. 5. Print Done Print Print Done Done Mellow Foods is considering replacing all 12 of its meat scales with new, digital ones. la Click the icon to view additional information.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Given the preceding information, what is the net present value of the new scales? Ignore taxes. (Round intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) The net present value is $ 43,470 Requirement 2. Assume the $35,000 cost savings are in current real dollars and the inflation rate is 4%. Recalculate the NPV of the project. (Round the nominal rate to the nearest whole percentage, and cumulati- inflation rates to three decimal places, X.XXX. Round monetary intermediary calculations to the nearest whole dollar. Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negativ net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) Assuming an inflation rate of 4%, The net present value is $ Enter any number in the edit fields and then click Check Answer. Requirements More Info 1. 2. 3. Given the preceding information, what is the net present value of the new scales? Ignore taxes. Assume the $35,000 cost savings are in current real dollars and the inflation rate is 4%. Recalculate the NPV of the project. Based on your answers to requirements 1 and 2, should Mellow Foods buy the new meat scales? Now assume that the company's tax rate is 35%. Calculate the NPV of the project assuming no inflation. Again assuming that the company faces a 35% tax rate, calculate the NPV of the project under an inflation rate of 4%. Based on your answers to requirements 4 and 5, should Mellow Foods buy the new meat scales? The old scales are fully depreciated and have no disposal value. The new scales cost $140,000 (in total). Because the new scales are more efficient and more accurate than the old scales, Fancy Foods will have annual incremental cash savings from using the new scales in the amount of $35,000 per year. The scales have a 6-year useful life and no terminal disposal value and are depreciated using the straight-line method. Fancy Foods requires a 4% real rate of return. 4. 5. Print Done Print Print Done Done

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