Question
Please ans asap Question: A project with a life of 5 has an initial fixed asset investment of $32,760, an initial NWC investment of $3,120,
Please ans asap
Question:
A project with a life of 5 has an initial fixed asset investment of $32,760, an initial NWC investment of $3,120, and an annual OCF of $49,920. The fixed asset is fully depreciated over the life of the project and has no salvage value. |
If the required return is 13 percent, what is the project's equivalent annual cost, or EAC? |
Multiple Choice
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$-59,639.74
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$-62,621.73
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$-56,657.76
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$-41,953.35
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$-50,693.78
- Question:
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Dog Up! Franks is looking at a new sausage system with an installed cost of $600,600. This cost will be depreciated straight-line to zero over the project's 8-year life, at the end of which the sausage system can be scrapped for $92,400. The sausage system will save the firm $184,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $43,120.
If the tax rate is 22 percent and the discount rate is 16 percent, what is the NPV of this project? Multiple Choice
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$67,276.18
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$119,227.28
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$93,722.98
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$97,243.48
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$89,259.98
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