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please see attached Jefferson Products Inc. is considering purchasing a new automatic press brake, which costs $330,000 including installation and shipping. The machine is expected

please see attached
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Jefferson Products Inc. is considering purchasing a new automatic press brake, which costs $330,000 including installation and shipping. The machine is expected to generate net cash inflows of $55,000 per year for 13 years. At the end of 13 years, the book value of the machine will be $0, and it is enticipated that the machine will be sold for $120,000. If the press brake project is undertaken, Jefferson will have to increase its net working capital by $90,000, when the project is terminated in 13 years, there will no longer be a need for this incremental working capital, and this type of project and its marginal tax rate is 40 percent. Use Table 11 and Table W can be liquidated and made available to Jefferson for other uses. Jefferson requires a 12 percent annual return to answer the questions. a. Calculate the press brake's net present value. Round your answer to the nearest dollar. b. Is the project acceptable? The project is alt c. What is the meaning of the computed net present value figure? Round your answer to the nearest dollar. The value of the firm, and therefore the shareholders' wealth, is-Select- by $ as a result of undertaking this project. d. What is the project's internal rate of return? Round your answer to two decimal places. e. For the press brake project, at what annual rates of return do the net present value and internal rate of return methods assume that the net cash inflows are being reinvested? Round your answers to two decimal places. The net present value calculation assumes the net cash flows are reinvested at %. The internal rate of return calculation assumes the net cash flows are reinvested at to answer the du a. Calculate the press brake's net present value. Round your answer to the nearest dollar. b. Is the project acceptable? The project is-Select- c. What is the meaning of the computed net present value figure? Round your answer to the nearest dollar. The value of the firm, and therefore the shareholders' wealth, is-Select- by $ as a result of undertaking this project. d. What is the project's internal rate of return? Round your answer Silect places. % Increased value and internal rate of return methods assume that the net cash inflows an e. For the press brake project, at what annual rates of return do the answers to two decimal places. decreased The net present value calculation assumes the net cash flows are reinvested at %. The internal rate of return calculation assumes the net 96

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