The belue company is a national portablr building manufacturer.

Future Value of Annuity of $1 table of 12%. Belue is subject to a 20% tax rate Read the requirements More Info - f the pla Option 1: The plant, which has been fully depreciated for tax purposes can be sold immediately for $780,000 Option 2: The plant can be leased to the Timber Corporation, one of Belue's suppliers, for 4 years. Under the lease terms, Timber would pay Belue $173,000 rent per year (payable at year-end) and would grant Belue a $63,000 annual discount from the normal price of lumber purchased by Belue. (Assume that the discount is received at year-end for each of the 4 years.) Timber would bear all of the plant's ownership costs. Belue expects to sell this plant for $200,000 at the end of the 4-year lease Option 3: The plant could be used for 4 years to make porch swings as an accessory to be sold with a portable building, Fixed overhead costs (a cash outflow) before any equipment upgrades are estimated to be $23,000 annually for the 4-year period. The swings are expected to sell for $48 each Variable cost per unit is expected to be $25. The following production and sales of swings are expected 2018, 20.000 units, 2019. 23.000 units: 2020, 21.000 units, 2021 15,000 units. In order to manufacture the swings, some of the plant equipment would need to be upgraded at an immediate cost of $220.000. The equipment would be depreciated using the straight-line depreciation method and zero terminal disposal value over the 4 years it would be in use. Because of the equipment upgrades, Belue could sell the plant for $30,000 at the end of 4 years. No change in working capital would be required Print Done Then, determine the after-tax cash savings from annual Gepreciation deductions Finally, determine the after-tax ca Enter the net present value of the investment rounded to the nearest whole dollar) hp Belue Company treats all cash flows as if they occur at the end of the year, and uses an after-tax required rate of return of 12% Belue is subject to a 20% tax rate on all income, including capital gains Requirement 1. Calculate net present value of each of the options and determine which option Belue should select using the NPV criterion The net present value of Option is Begin the calculation of Option 2 by determining the after-tax cash inflow for rent. Then, determine the after-tax cash inflow for the material purchases discount. Final use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar) Net Cash Present Value PV factor Inflow of Cash Flows Present value of net cash flows. Option 2 After-tax cash inflows from rent Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 After-tax cash inflows from discount on purchases Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Present value of after-tax cash flow from sale of plant Net present value Option 2 Begin the calculation of Option 3 by determining the after tax cash inflow from operations (excluding depreciation) Then, determine the after-tax cash savings from mal de three decimal places.XXXX, and use a minus signor parentheses for a negative present value of net cash flows. Enter the not present value of the investment rounded to the Dental Choose from any list of enter any number in the input fields and then continue to the next question Save to cum on December 31, 2017 Mary Carter, the corporate controller as been asked to look at three options regarding the plant Pure of Arvuti Click the icon to view the options.) EVA Bele Company treats al cash flows as if they occur at the end of the year, and uses an after-tax tegured rate of return of 126 Behre is subject to a 20% taxate Read the courses on all income, including capital gains Ne prosent value Option 2 Begin the calculation of Option 3 by determining the altre cash intow from operation excluding deprecation The dete the atteux cash from a depreciation detection Final de three decimal places, XXXX od osamor parow for a negatywne prosentvake of the nation rounded to the whole ola Nex Cash Intlow Pre Value of Cal Flow PV Factor Pre vil omblon Option Irene Altera tromperidone and recono Dec 31, 2010 Dec 31, 2019 Det31.2000 Dec 31, 2023 Arnox cao sang romanul deprecan dedition Dec 31 2010 Dec 31, 2019 Dec '11.2020 Dec 31, 2003 Protectw from sale of an Now Open Cheese momenten in the under conto the Dec 31, 2019 Dec 31, 2020 Dec 31, 2021 Present value of after-tax cash flow from sale of plant Net present value Option 3 Belue Company should choose for the Benton plant Requirement 2. What nonfinancial factors should Belue consider before making it choice? For each option, select one or more nonfinancial factors that Belue should consider. (Select all that apply. If a box is not used in the table, leave the box empt Option 1 Option 2 Option 3 Choose from any list or enter any number in the input helds and then continue to the next question sh inflow for the material purchases discount. Finally, determine the after-tax cash inflow on sale of the pla unded to the nearest whole dollar.) 0 Requirements 1. Q Calculate net present value of each of the options and determine which option Belue should select using the NPV criterion. What nonfinancial factors should Belue consider before making its choice? 2. Print Done