Please solve 1,2,6,7,8..!

1. The Salisbury Corporation is considering four mutually exclusive alternatives for a major capital investment project. All alternatives have a useful life of 10 years with no salvage value at the end. Straight line depreciation will be used. The corporation pays federal and state tax at a rate of 34% and expects an after-tax MARR of 10%. Determine which alternative should be selected, using the NPV method.

2. The operating cash flow for the acquisition and maintenance of a clamshell for excavation is given by At in the table below. Three financing plans, each charging a borrowing rate of 8% but having a different method of - repayment, are represented by three different cash flows of . Find the net present value for each of the three combined cash flows AAt for operating and financing if the MARR is specified to be 8%.

6. The Bailey Construction Company is considering the purchase of a diesel power shovel to improve its productivity. The shovel, which costs $80,000, is expected to produce a before-tax benefit of $36,000 in the first year, and $4,000 less in each succeeding year for a total of five years (i.e., before tax benefit of $32,000 in the second year, $28,000 in the third year, continuing to $20,000 in the fifth year). The salvage value of the equipment will be $5,000 at the end of 5 years. The firm uses the sum-of-years'-digits depreciation for the equipment and has an annual tax rate of 34%. If the MARR after tax is 10%, is the purchase worthwhile?

7. The ABC Corporation is considering the purchase of a number of pipe-laying machines in order to facilitate the operation in a new pipeline project expected to last six years. Each machine will cost $26,000 and will have no salvage value after the project is complete. The firm uses the straight line depreciation method and pays annual income taxes on profits at the rate of 34%. If the firm's MARR is 8%, which is the minimum uniform annual benefit before tax that must be generated by this machine in order to justify its purchase?

8. The Springdale Corporation plans to purchase a demolition and wrecking machine to save labor costs. The machine costs $60,000 and has a salvage value of $10,000 at the end of 5 years. The machine is expected to be in operation for 5 years, and it will be depreciated by the straight line method up to the salvage value. The corporation specifies an after-tax MARR including inflation of 10% and has an income tax rate of 34%. The annual inflation rate is expected to be 5% during the next 5 years. If the uniform annual net benefit before tax in terms of base-year dollars for the next 5 years is $20,000, is the new investment worthwhile?

note: table are posted in the bottom with the question no.

1. The Salisbury Corporation is considering four mutually exclusive alternatives for a major capital investment project. All alternatives have a useful life of 10 years with no salvage value at the end. Straight line depreciation will be used. The corporation pays federal and state tax at a rate of 34%, and expects an after-tax MARR of 10%. Determine which alternative should be selected, using the NPV method Before-tax uniform Initial cost annual net benefits Alternatives (Smillion) (Smillion) 1 $4.0 $1.5 2 3.5 1.1 3 3.0 1.0 4 3.7 1.3 N 2. The operating cash flow for the acquisition and maintenance of a clamshell for excavation is given by A, in the table below. Three financing plans, each charging a borrowing rate of 8% but having a different method of - repayment, are represented by three different cash flows of t Find the net present value for each of the three combined cash flows AA, for operating and financing if the MARR is specified to be 8%. Financing A Year t 0 1 2 3 4 5 Operating At -$80,000 30.000 30.000 30,000 30,000 30,000 (a) $40,000 -10,020 -10,020 -10,020 -10,020 -10,020 (b) $40,000 -3,200 -3,200 -3,200 -3,200 -43,200 $40.000 -13,200 -12,400 -11,600 -10.800 0 ** Apps ET Course Approval... NJIT Canvas NJIT Home > back2classroom hauler will generate a gross income of $12,000 per year, but its operating cost will be $2,000 during the first year, increasing by $500 per year until it reaches $5,000 in the fifth year. The straight line depreciation method is used. The tax rate is 34% and the after-tax MARR is 10%. Determine the net present value of the hauler purchase for a five year planning horizon. 6. The Bailey Construction Company is considering the purchase of a diesel power shovel to improve its productivity. The shovel, which costs $80,000, is expected to produce a before-tax benefit of $36,000 in the first year, and $4,000 less in each succeeding year for a total of five years i.e., before tax benefit of $32,000 in the second year, $28,000 in the third year, continuing to $20,000 in the fifth year). The salvage value of the equipment will be $5,000 at the end of 5 years. The firm uses the sum-of-years'-digits depreciation for the equipment and has an annual tax rate of 34%. If the MARR after tax is 10%, is the purchase worthwhile? 7. The ABC Corporation is considering the purchase of a number of pipe-laying machines in order to facilitate the operation in a new pipeline project expected to last six years. Each machine will cost $26,000 and will have no salvage value after the project is complete. The firm uses the straight line depreciation method and pays annual income taxes on profits at the rate of 34%. If the firm's MARR is 8%, which is the minimum uniform annual benefit before tax that must be generated by this machine in order to justify its purchase? 8. The Springdale Corporation plans to purchase a demolition and wrecking machine to save labor costs. The machine costs $60,000 and has a salvage value of $10,000 at the end of 5 years. The machine is expected to be in operation for 5 years, and it will be depreciated by the straight line method up to the salvage value. The corporation specifies an after-tax MARR including inflation of 10% and has an income tax rate of 34%. The annual inflation rate is expected to be 5% during the next 5 years. If the uniform annual net benefit before tax in terms of base-year dollars for the next 5 years is $20.000, is the new investment worthwhile? 9.XYZ Company plans to invest S2 million in a new plant which is expected to produce a uniform annual net benefit before tax of $600,000 in terms of the base-year dollars over the next 6 years. The plant has a salvage value of $250.000 at the end of 6 years and the depreciation allowance is based on the straight line depreciation method. The corporate tax rate is 34o, and the after-tax 3 E ed Ge VATIT ........... CH-6 1. The Salisbury Corporation is considering four mu for a major capital investment project. All alterna years with no salvage value at the end. Straight li The corporation pays federal and state tax at a ra after-tax MARR of 10%. Determine which alterna the NPV method. E Before-tax uniform Initial cost annual net benefits Alternatives ($million) (Smillion) 1 $4.0 $1.5 2 3.5 1.1 3 3.0 1.0 4 3.7 1.3 2. The operating cash flow for the acquisition and ma excavation is given by A in the table below. Three charging a borrowing rate of 8% but having a diffe 2. The operating cash flow for the acquisition and maintenance of excavation is given by A, in the table below. Three financing p charging a borrowing rate of 8% but having a different method are represented by three different cash flows of At. Find the ne for each of the three combined cash flows AA, for operating an the MARR is specified to be 8%. I Financing At Year Operating t At (a) (b) (c) 0 -$80,000 $40,000 $40,000 $40,000 1 30,000 -10.020 -3,200 -13,200 2 30,000 -10,020 -3,200 -12,400 3 30,000 -10,020 -3,200 -11,600 4 30,000 -10,020 -3,200 -10.800 30,000 -10,020 -43,200 0 1. The Salisbury Corporation is considering four mutually exclusive alternatives for a major capital investment project. All alternatives have a useful life of 10 years with no salvage value at the end. Straight line depreciation will be used. The corporation pays federal and state tax at a rate of 34%, and expects an after-tax MARR of 10%. Determine which alternative should be selected, using the NPV method Before-tax uniform Initial cost annual net benefits Alternatives (Smillion) (Smillion) 1 $4.0 $1.5 2 3.5 1.1 3 3.0 1.0 4 3.7 1.3 N 2. The operating cash flow for the acquisition and maintenance of a clamshell for excavation is given by A, in the table below. Three financing plans, each charging a borrowing rate of 8% but having a different method of - repayment, are represented by three different cash flows of t Find the net present value for each of the three combined cash flows AA, for operating and financing if the MARR is specified to be 8%. Financing A Year t 0 1 2 3 4 5 Operating At -$80,000 30.000 30.000 30,000 30,000 30,000 (a) $40,000 -10,020 -10,020 -10,020 -10,020 -10,020 (b) $40,000 -3,200 -3,200 -3,200 -3,200 -43,200 $40.000 -13,200 -12,400 -11,600 -10.800 0 ** Apps ET Course Approval... NJIT Canvas NJIT Home > back2classroom hauler will generate a gross income of $12,000 per year, but its operating cost will be $2,000 during the first year, increasing by $500 per year until it reaches $5,000 in the fifth year. The straight line depreciation method is used. The tax rate is 34% and the after-tax MARR is 10%. Determine the net present value of the hauler purchase for a five year planning horizon. 6. The Bailey Construction Company is considering the purchase of a diesel power shovel to improve its productivity. The shovel, which costs $80,000, is expected to produce a before-tax benefit of $36,000 in the first year, and $4,000 less in each succeeding year for a total of five years i.e., before tax benefit of $32,000 in the second year, $28,000 in the third year, continuing to $20,000 in the fifth year). The salvage value of the equipment will be $5,000 at the end of 5 years. The firm uses the sum-of-years'-digits depreciation for the equipment and has an annual tax rate of 34%. If the MARR after tax is 10%, is the purchase worthwhile? 7. The ABC Corporation is considering the purchase of a number of pipe-laying machines in order to facilitate the operation in a new pipeline project expected to last six years. Each machine will cost $26,000 and will have no salvage value after the project is complete. The firm uses the straight line depreciation method and pays annual income taxes on profits at the rate of 34%. If the firm's MARR is 8%, which is the minimum uniform annual benefit before tax that must be generated by this machine in order to justify its purchase? 8. The Springdale Corporation plans to purchase a demolition and wrecking machine to save labor costs. The machine costs $60,000 and has a salvage value of $10,000 at the end of 5 years. The machine is expected to be in operation for 5 years, and it will be depreciated by the straight line method up to the salvage value. The corporation specifies an after-tax MARR including inflation of 10% and has an income tax rate of 34%. The annual inflation rate is expected to be 5% during the next 5 years. If the uniform annual net benefit before tax in terms of base-year dollars for the next 5 years is $20.000, is the new investment worthwhile? 9.XYZ Company plans to invest S2 million in a new plant which is expected to produce a uniform annual net benefit before tax of $600,000 in terms of the base-year dollars over the next 6 years. The plant has a salvage value of $250.000 at the end of 6 years and the depreciation allowance is based on the straight line depreciation method. The corporate tax rate is 34o, and the after-tax 3 E ed Ge VATIT ........... CH-6 1. The Salisbury Corporation is considering four mu for a major capital investment project. All alterna years with no salvage value at the end. Straight li The corporation pays federal and state tax at a ra after-tax MARR of 10%. Determine which alterna the NPV method. E Before-tax uniform Initial cost annual net benefits Alternatives ($million) (Smillion) 1 $4.0 $1.5 2 3.5 1.1 3 3.0 1.0 4 3.7 1.3 2. The operating cash flow for the acquisition and ma excavation is given by A in the table below. Three charging a borrowing rate of 8% but having a diffe 2. The operating cash flow for the acquisition and maintenance of excavation is given by A, in the table below. Three financing p charging a borrowing rate of 8% but having a different method are represented by three different cash flows of At. Find the ne for each of the three combined cash flows AA, for operating an the MARR is specified to be 8%. I Financing At Year Operating t At (a) (b) (c) 0 -$80,000 $40,000 $40,000 $40,000 1 30,000 -10.020 -3,200 -13,200 2 30,000 -10,020 -3,200 -12,400 3 30,000 -10,020 -3,200 -11,600 4 30,000 -10,020 -3,200 -10.800 30,000 -10,020 -43,200 0