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pls hurry The rovireat tian nachina) 1s The nov (puchase the curreme muchine) is 1 (Rlownd to the nowest dobos) The NPV (porchase the atvanced

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The rovireat tian nachina) 1s The nov (puchase the curreme muchine) is 1 (Rlownd to the nowest dobos) The NPV (porchase the atvanced machine) as (Fhound to the neavest doblar) Which of the following is the beat dhoice? A. Purchase the actanced machina. B. Purchane the cument mactine. c. Fenat doe current machina Buhler Industries is a farm implement manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors. Buhler plans to use a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incomplete incremental free cash flow projections (in millions of dollars). The relevant CCA rate for the capital expenditures is 20%. Assume assets are never sold. a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight tractors? b. Based on input from the marketing department. Buhler is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 10% higher than forecast? What is the NPV of this project if revenues are 10% lower than forecast? Using the indirect method requires a separate calculation of the CCA tax shield. What is the present value of the CCA tax stield? The present value of the CCA tax shield is 5 million (Round to two decimal places ) a For this base-case scenano, what is the NPV of the plant to manutacture lightweight Iractors? The NPV is 3 milition (Round to two decimal places.) b. Based on input from the marketing department, Buhler is uncertain about its revenue forecast fn particular, managernent. would tike to examine the sensityity of the NPV to the revenue atssumptions. 1. What is the NPV of this project is revenues are 10% higher than forecast? The NPV les milion. (Round to fwo decirnal places?) 2. What is the NeV A covenues are 10% lower than forecast? The Npyiss, milion (Round ta two docinal places) The rovireat tian nachina) 1s The nov (puchase the curreme muchine) is 1 (Rlownd to the nowest dobos) The NPV (porchase the atvanced machine) as (Fhound to the neavest doblar) Which of the following is the beat dhoice? A. Purchase the actanced machina. B. Purchane the cument mactine. c. Fenat doe current machina Buhler Industries is a farm implement manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight tractors. Buhler plans to use a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incomplete incremental free cash flow projections (in millions of dollars). The relevant CCA rate for the capital expenditures is 20%. Assume assets are never sold. a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight tractors? b. Based on input from the marketing department. Buhler is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 10% higher than forecast? What is the NPV of this project if revenues are 10% lower than forecast? Using the indirect method requires a separate calculation of the CCA tax shield. What is the present value of the CCA tax stield? The present value of the CCA tax shield is 5 million (Round to two decimal places ) a For this base-case scenano, what is the NPV of the plant to manutacture lightweight Iractors? The NPV is 3 milition (Round to two decimal places.) b. Based on input from the marketing department, Buhler is uncertain about its revenue forecast fn particular, managernent. would tike to examine the sensityity of the NPV to the revenue atssumptions. 1. What is the NPV of this project is revenues are 10% higher than forecast? The NPV les milion. (Round to fwo decirnal places?) 2. What is the NeV A covenues are 10% lower than forecast? The Npyiss, milion (Round ta two docinal places)

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