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please answer all parts or dont reply! A fully automatic machine is to be purchased for $71,000 80% of which de $55,800) is to be
please answer all parts or dont reply!
"A fully automatic machine is to be purchased for $71,000 80% of which de $55,800) is to be borrowed with the stipulation that the loan be repaid with six equal end-of-year payments at 11% compounded annually. The machine is expected to provide an annual revenue of $22.000 for six years and has a OCA rate of 30%. Expenses are $41000 for each year of the project. The salvage value at the end of six years is expected to be $10,000. Assume a marginal tax rate of 36% and a MARR of 20%. (a) Complete the entries in the table below and determine the net After-Tax Cash Flows ATGFS) over the project life, ATCFs Calculation Year 0 1 2 3 4 5 10 6 Income Statement Revenues $ Same as in year 1 Same as in year i Same as in year 1 Same as in year 1 Same as in year 1 Expenses $ Same as in year 1 Same as in year Same as in year 1 Same as in year 1 Same as in year 1 CCA $ $ $ $ $4347.01 Debt interest $ $ $2529.19 $ Taxable income $ -$5563/40 $ As calculated As calculated Income taxes $ As calculated $ As calculated As calculated Net Income $ As calculated $ $B$32.46 As calculated $ Cash Flow Statement Operating activities Net income As calculated As calculated As calculated As calculated As calculateg As Calculate ATCFS Calculation 6 5 4 3 2 1 0 Year Income Statement $ Same as in year 1 Same as in year 1 Same as in year 1 Same as in year 1 Same as in year 1 Revenues Same as in year $ Same as in year 1 Same as in year 1 Same as in year 1 Same as in year 1 Expenses $ $ $4347.01 $ $ $ $ CCA $ $ $ $2529.19 $ Debt interest -$5563.40 $ $ As calculated -CA As calculated Taxable income $ As calculated $ As calculated As calculated $ Income taxes $ As calculated $ $3532.46 As calculated $ Net Income Cash Flow Statement Operating activities As calculated As calculated As calculated Net Income As calculated As calculated As calculated As calculated As calculated As calculated As calculated As calculated CCA As calculated Investment activities S Machine W Disposal tax effect Financing activities -$9817.11 As calculated As calculated Debt principal IS Investment activities Machine Disposal tax effect Financing activities -$9817.11 As calculated As calculated Debt principal +$ +$ + $1239.93 +$ $ $ + $ Net Cash Flow (ATCF) $ (b) The Net Present Worth for this investment is 3 9 (c) The Internal Rate of Return for this investment is 02 (d) At MARR=20%, the project should be NOTE: Please enter your answers to two decimal places. "A fully automatic machine is to be purchased for $71,000 80% of which de $55,800) is to be borrowed with the stipulation that the loan be repaid with six equal end-of-year payments at 11% compounded annually. The machine is expected to provide an annual revenue of $22.000 for six years and has a OCA rate of 30%. Expenses are $41000 for each year of the project. The salvage value at the end of six years is expected to be $10,000. Assume a marginal tax rate of 36% and a MARR of 20%. (a) Complete the entries in the table below and determine the net After-Tax Cash Flows ATGFS) over the project life, ATCFs Calculation Year 0 1 2 3 4 5 10 6 Income Statement Revenues $ Same as in year 1 Same as in year i Same as in year 1 Same as in year 1 Same as in year 1 Expenses $ Same as in year 1 Same as in year Same as in year 1 Same as in year 1 Same as in year 1 CCA $ $ $ $ $4347.01 Debt interest $ $ $2529.19 $ Taxable income $ -$5563/40 $ As calculated As calculated Income taxes $ As calculated $ As calculated As calculated Net Income $ As calculated $ $B$32.46 As calculated $ Cash Flow Statement Operating activities Net income As calculated As calculated As calculated As calculated As calculateg As Calculate ATCFS Calculation 6 5 4 3 2 1 0 Year Income Statement $ Same as in year 1 Same as in year 1 Same as in year 1 Same as in year 1 Same as in year 1 Revenues Same as in year $ Same as in year 1 Same as in year 1 Same as in year 1 Same as in year 1 Expenses $ $ $4347.01 $ $ $ $ CCA $ $ $ $2529.19 $ Debt interest -$5563.40 $ $ As calculated -CA As calculated Taxable income $ As calculated $ As calculated As calculated $ Income taxes $ As calculated $ $3532.46 As calculated $ Net Income Cash Flow Statement Operating activities As calculated As calculated As calculated Net Income As calculated As calculated As calculated As calculated As calculated As calculated As calculated As calculated CCA As calculated Investment activities S Machine W Disposal tax effect Financing activities -$9817.11 As calculated As calculated Debt principal IS Investment activities Machine Disposal tax effect Financing activities -$9817.11 As calculated As calculated Debt principal +$ +$ + $1239.93 +$ $ $ + $ Net Cash Flow (ATCF) $ (b) The Net Present Worth for this investment is 3 9 (c) The Internal Rate of Return for this investment is 02 (d) At MARR=20%, the project should be NOTE: Please enter your answers to two decimal places
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