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Question 16 5 pts Compute the Pl statistic for Project X with the cash flows shown below if the appropriate cost of capital is 10
Question 16 5 pts Compute the Pl statistic for Project X with the cash flows shown below if the appropriate cost of capital is 10 percent. Time 0 1 2 3 4 5 -$100 Cash Flow -$1,000 $300 $2,000 -$1,148 $300 O 1.21 O 1.15 1.18 O 1.08 Question 21 5 pts Your firm needs a machine which costs $125,000, and requires $10,000 in maintenance for each year of its 3-year life. After 4 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 20% and a discount rate of 15%. What is the depreciation tax shield for this project in year 4? Year 3-Year 1 2 2 33.33% 44.45% 14.81% 3 4 7.41% $18,512.50 $8,332.50 $1,852.50 $3,702.50
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