Question
Purchase Price for assembly line $(65,000) Shipping cost for assembly line $ (5,000) Change in Net Working Capital $(10,000) Increase in Sales $ 45,000 Increase
Purchase Price for assembly line $(65,000) Shipping cost for assembly line $ (5,000) Change in Net Working Capital $(10,000) Increase in Sales $ 45,000 Increase in Operating Expenses $ 30,000 Increase in Annual Depreciation $ 10,000 Tax Rate 40% Expected Salvage Market Value for assembly line $ 35,000 Expected Salvage Book Value for assembly line $ 35,000 Company Cost of Capital 10% Expected Life (in years) 3Question 16 options: Using the above information, calculate the project's Internal Rate of Return (IRR). Based on your IRR result from the above question, what can you conclude?
Question 17 options:
The project should be accepted.
The project should be rejected.
Cannot be determined from the information provided.
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