question

1/ you just bought an asset with a straight line depreciation of $6200 per year for the next 8 years. Assuming a corporate tax rate of 21%, what is the NPV of the actual cash savings associated with this cashflow? Use a discount rate of 6%.

2/You have a project that has an initial cost of $675,000. It is expected to earn $82,000 annually for the indefinite future. Using a cumulative cashflow curve or the formula, calculate its simple breakeven point. If the simple breakeven were shorter, how would it affect your recommendation and why?