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please help!! please help!! fast please! ADAM COMPANY HAS AN OLD MACHINE THAT COST WHEN PURCHASED $130000, THE FIRM DEPRECIATION METHOD IS MACRS FOR 3
please help!! please help!! fast please!
ADAM COMPANY HAS AN OLD MACHINE THAT COST WHEN PURCHASED $130000, THE FIRM DEPRECIATION METHOD IS MACRS FOR 3 YEARS (PERCENTAGED Y1=33% Y2 45%,Y3=15% Y4=7%) THE EXPECTED SELLING PRICE OF THE OLD MACHINE IS 65000 ADAM CAN BUY A NEW MACHINE WITH PRICE $170000 AND INSTALLATION COST OF $7000 AND SHIPPMENT $ 4000 IT WILL ALSO BE DEPRECIATED USING MACRS. THE MACHINE REQUIRES RECEIVABLES TO INCREASE 12000 INVENTORY 19000 AND ACCOUNT PAYABLE WILL INCREASE BY $16000 REVENUES ARE EXPECTED TO BE 150000 AND EXPENSES ARE 60% OF REVENUES FOR THE 3 YEARS IF THE NEW MACHINE CAN BE SOLD AT THE END OF THE 3 YEARS FOR $22000 AND TAXES IS 38%,K IS 0.15 WHAT IS THE INITIAL INVESTMENT? WHAT IS THE DISCOUNTED OPERATING CASH FLOW FOR THE 3 YEARS? WHAT IS THE TERMINAL VALUE? WHAT IS THE NPV? ADAM COMPANY HAS AN OLD MACHINE THAT COST WHEN PURCHASED $130000, THE FIRM DEPRECIATION METHOD IS MACRS FOR 3 YEARS (PERCENTAGED Y1=33% Y2 45%,Y3=15% Y4=7%) THE EXPECTED SELLING PRICE OF THE OLD MACHINE IS 65000 ADAM CAN BUY A NEW MACHINE WITH PRICE $170000 AND INSTALLATION COST OF $7000 AND SHIPPMENT $ 4000 IT WILL ALSO BE DEPRECIATED USING MACRS. THE MACHINE REQUIRES RECEIVABLES TO INCREASE 12000 INVENTORY 19000 AND ACCOUNT PAYABLE WILL INCREASE BY $16000 REVENUES ARE EXPECTED TO BE 150000 AND EXPENSES ARE 60% OF REVENUES FOR THE 3 YEARS IF THE NEW MACHINE CAN BE SOLD AT THE END OF THE 3 YEARS FOR $22000 AND TAXES IS 38%,K IS 0.15 WHAT IS THE INITIAL INVESTMENT? WHAT IS THE DISCOUNTED OPERATING CASH FLOW FOR THE 3 YEARS? WHAT IS THE TERMINAL VALUE? WHAT IS THE NPVStep by Step Solution
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