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Please write the title yourself and answer its questions Consider company A would like to implement Lean System to improve their overall waste and performance.
Please write the title yourself and answer its questions
Consider company A would like to implement Lean System to improve their overall waste and performance. After calculation the investment, this Lean System will impact to their financial budgeting, with the information as below: The project costs $2.5 million and has a five-year service life. MACRS rule used for this project is based on seven year classification. At the end of the fifth year, any assets held for the project will be sold. The expected salvage value will be about 10% of the initial project cost. The company will finance 40% of the project money from an outside financial institution at an interest rate of 10%. The company is required to repay the loan with five equal annual payments. The incremental (marginal) tax rate on the investment is 35%. The MARR is 18%. . . . With the preceding financial information given: a) Determine the project's net cash flows b) Compute the annual equivalent worth for this projectStep by Step Solution
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