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Need help asap!! The fellowing information was included on the initial reguistion: Purchase Price: Estimated purchase price for the nem eculpment is 5150 mitioo. The
Need help asap!!
The fellowing information was included on the initial reguistion: Purchase Price: Estimated purchase price for the nem eculpment is 5150 mitioo. The investment will be made inmeolsteiy after agproval. Often the purchase price does not Indude all anciliary expenses that are necessary for installation of the equipinent and must be included in the value. Part of your responsteility is to research these additional costs and make wre they are Included in the regulsition. Company's Depreciation Policy? - Feulpmert wil be depreciated using the 5tralkhefine method. - Equlptent has an economic life of 5 yers. Equgment expected to have aeco sairage valive at the end of year 5 . Mt that time the eculprient will be obsolete and seld for scrap. Carh latlows: Based on your Malyait profect inflews are expected to be 565 mition per yeac, begiriains one yeat atter installation of the new equipment is complete. Cash Outhew: The new equighent will have extra cash outflom of 510 timion pet year besinning one year from todis. Tax Rate: The comoany's estitiated tax rate is 105 . Project Evaluation (Total 100 pointi) Paft 1. Nov a wet (25 points) b) bimed on the lopy calculation is the retum Mcceptable! Pleave explain your conclusion. Pat 2. kitk Asietrment (29 poiets) Mewitiestiment of 1er h ias (25 points) Qecerd Receulvities of Aiset (25 pointy) paralulate the NPV \& IRR based on the actual expenditures (cash flow investment) Given your "now" recalculated NPV \& IRR, would you still accept this project? Please explain your conclusion. Date Accounts and Explanation PR Credit The fellowing information was included on the initial reguistion: Purchase Price: Estimated purchase price for the nem eculpment is 5150 mitioo. The investment will be made inmeolsteiy after agproval. Often the purchase price does not Indude all anciliary expenses that are necessary for installation of the equipinent and must be included in the value. Part of your responsteility is to research these additional costs and make wre they are Included in the regulsition. Company's Depreciation Policy? - Feulpmert wil be depreciated using the 5tralkhefine method. - Equlptent has an economic life of 5 yers. Equgment expected to have aeco sairage valive at the end of year 5 . Mt that time the eculprient will be obsolete and seld for scrap. Carh latlows: Based on your Malyait profect inflews are expected to be 565 mition per yeac, begiriains one yeat atter installation of the new equipment is complete. Cash Outhew: The new equighent will have extra cash outflom of 510 timion pet year besinning one year from todis. Tax Rate: The comoany's estitiated tax rate is 105 . Project Evaluation (Total 100 pointi) Paft 1. Nov a wet (25 points) b) bimed on the lopy calculation is the retum Mcceptable! Pleave explain your conclusion. Pat 2. kitk Asietrment (29 poiets) Mewitiestiment of 1er h ias (25 points) Qecerd Receulvities of Aiset (25 pointy) paralulate the NPV \& IRR based on the actual expenditures (cash flow investment) Given your "now" recalculated NPV \& IRR, would you still accept this project? Please explain your conclusion. Date Accounts and Explanation PR Credit Step by Step Solution
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