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please help ASAP. thanks. Question 1. (includes parts a and b below). You are working for a small company that manufactures fabricated metal products. You

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please help ASAP. thanks.

Question 1. (includes parts a and b below). You are working for a small company that manufactures fabricated metal products. You are planning to add a new type of product to your portfolio, hoping to get a larger market share. You plan to buy new production equipment to make the production line appropriate for this upgrade. You have 2 types of alternative equipment (Alternative A and B), and you want to select one of these two based on their overall costs. Alternative A requires a $130,000 investment and $15,000 extra for shipping and installation. If you invest in this equipment, the expected annual maintenance costs are $30,000. The ADR guideline period of this equipment is 12 years and the project life is 3 years. At the end of the project life, it is expected that the equipment will have a market value (MV) in the amount of $40,000. alternative A. The federal tax rate is 33.8% and the state tax rate You decided to use after tax analysis to calculate the NPV is 6.4%, ATRR = 10%. a. (20 points) Please see the starter table below and use it to build a proper table for Alternative A and calculate its NPV. All appropriate cells must contain formulas. b. (3 points) If the after tax NPV of alternative B is -$160,000, which of these projects should you choose? Please choose one below by selecting that option and changing the text color to red below. Alternative A Alternative B c. (7 points) In addition to widening the company's market share to increase revenues, your boss is also interested in minimizing cash outflows. In order to pursue this goal, your boss considers purchasing a plastic toy making machinery since it could potentially provide large depreciation deductions. This machinery is not usable to manufacture fabricated metal products. Your boss tasks you with estimating future after tax cash flows that incorporate these deductions and make a recommendation to him/her about the feasibility of this idea. In the space below, please discuss in detail what recommendations you should/would provide to your boss? Please dicuss from the perspective of what depreciable property is / should be for a particular business. Question 2. (30 points) You have 3 capital investment alternatives that are expected to increase the company's income as described in the table below. Assume repeatability and an 8% MARR. Use the most appropriate method to select the most feasible alternative and mark your choice by changing the text color to red below. All appropriate cells must contain formulas. Alternative A Alternative B Alternative C A C Investment $10,000 10 years Useful life Annual revenues Annual costs Salvage B $9,000 9 years $7,000 $2,000 $1,000 $7,000 $2,000 $2,000 $8,000 8 years $7,000 $2,000 0 Question 3. (23 points) A major boiler feed pump is considered for replacement. The planning horizon is 9 years at which point its salvage is estimated as $o. Its current market value is $750 and its current book value is $4,895. Annual operating costs are $5,340 per year. The pump was installed three years ago and its remaining MACRS depreciation deductions are $1,958, $1,958, and $979 for years 1, 2, and 3 respectively (depreciation deductions are zero for years 4, 5, 6, 7, 8, and 9). The challenger costs $16,000 and will have annual expenses of $3,320 and a salvage of $3,200 at the end of nine years. Use the cash flow replacement analysis approach to solve this problem. After tax MARR= 6%, the effective tax rate is 40%, and five year MACRS applies to the challenger. The info given above is also summarized in the table below. You have two options to choose from as follows. Starter tables for each of these options are provided below. Use those tables to complete your analysis. All appropriate cells must contain formulas. Option 1: Keep the defender throughout project life, or Option 2: Purchase the challenger now and use it throughout project life. Which option below should you choose? Please select only one by changing the text color of that option to red below. Option 1 Option 2 O MARR=ATRR: 6% Effective tax rate 40% Defender MV if replaced by the challenger now: 750 Current BV: 4895 Remaining life: 9 Annual costs: 5340 Salvage at the end of its remaining life 0 Challenger Investment / Price: 16000 Annual costs: 3320 Salvage at the end of 9 yrs: 3200 Depreciation: 5-yr MACRS Question 1. (includes parts a and b below). You are working for a small company that manufactures fabricated metal products. You are planning to add a new type of product to your portfolio, hoping to get a larger market share. You plan to buy new production equipment to make the production line appropriate for this upgrade. You have 2 types of alternative equipment (Alternative A and B), and you want to select one of these two based on their overall costs. Alternative A requires a $130,000 investment and $15,000 extra for shipping and installation. If you invest in this equipment, the expected annual maintenance costs are $30,000. The ADR guideline period of this equipment is 12 years and the project life is 3 years. At the end of the project life, it is expected that the equipment will have a market value (MV) in the amount of $40,000. alternative A. The federal tax rate is 33.8% and the state tax rate You decided to use after tax analysis to calculate the NPV is 6.4%, ATRR = 10%. a. (20 points) Please see the starter table below and use it to build a proper table for Alternative A and calculate its NPV. All appropriate cells must contain formulas. b. (3 points) If the after tax NPV of alternative B is -$160,000, which of these projects should you choose? Please choose one below by selecting that option and changing the text color to red below. Alternative A Alternative B c. (7 points) In addition to widening the company's market share to increase revenues, your boss is also interested in minimizing cash outflows. In order to pursue this goal, your boss considers purchasing a plastic toy making machinery since it could potentially provide large depreciation deductions. This machinery is not usable to manufacture fabricated metal products. Your boss tasks you with estimating future after tax cash flows that incorporate these deductions and make a recommendation to him/her about the feasibility of this idea. In the space below, please discuss in detail what recommendations you should/would provide to your boss? Please dicuss from the perspective of what depreciable property is / should be for a particular business. Question 2. (30 points) You have 3 capital investment alternatives that are expected to increase the company's income as described in the table below. Assume repeatability and an 8% MARR. Use the most appropriate method to select the most feasible alternative and mark your choice by changing the text color to red below. All appropriate cells must contain formulas. Alternative A Alternative B Alternative C A C Investment $10,000 10 years Useful life Annual revenues Annual costs Salvage B $9,000 9 years $7,000 $2,000 $1,000 $7,000 $2,000 $2,000 $8,000 8 years $7,000 $2,000 0 Question 3. (23 points) A major boiler feed pump is considered for replacement. The planning horizon is 9 years at which point its salvage is estimated as $o. Its current market value is $750 and its current book value is $4,895. Annual operating costs are $5,340 per year. The pump was installed three years ago and its remaining MACRS depreciation deductions are $1,958, $1,958, and $979 for years 1, 2, and 3 respectively (depreciation deductions are zero for years 4, 5, 6, 7, 8, and 9). The challenger costs $16,000 and will have annual expenses of $3,320 and a salvage of $3,200 at the end of nine years. Use the cash flow replacement analysis approach to solve this problem. After tax MARR= 6%, the effective tax rate is 40%, and five year MACRS applies to the challenger. The info given above is also summarized in the table below. You have two options to choose from as follows. Starter tables for each of these options are provided below. Use those tables to complete your analysis. All appropriate cells must contain formulas. Option 1: Keep the defender throughout project life, or Option 2: Purchase the challenger now and use it throughout project life. Which option below should you choose? Please select only one by changing the text color of that option to red below. Option 1 Option 2 O MARR=ATRR: 6% Effective tax rate 40% Defender MV if replaced by the challenger now: 750 Current BV: 4895 Remaining life: 9 Annual costs: 5340 Salvage at the end of its remaining life 0 Challenger Investment / Price: 16000 Annual costs: 3320 Salvage at the end of 9 yrs: 3200 Depreciation: 5-yr MACRS

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