The brewery "Los industriales" has been using a machine for 5 years that glues labels to bottles. Said labeler was purchased for $4,000 and is being depreciated on a straight-line basis over 10 years until it reaches a value of $0. Right now, the machine could be sold for $2,000. They can purchase a new label maker for $6,000, which would have a useful life of 5 years, and would lower labor costs by $1,200. The old machine will need a major repair in a few months, at a cost of about $300. If you buy the machine new, you will depreciate it on a straight-line basis over five years to a terminal value of $500. The company will invest in any project that generates more than 12% return. The tax rate is 30% In the case of buying the new machine, the money would come 50% from own funds, with a cost of money of 15%, and another 50% from a development bank loan, with a cost of 5%.

Answer:

1. What is the weighted cost of capital? 2. What is the effective cost of the investment in the new machine? (what the new one is worth minus the sale of the old one and the savings for the change) 3. What is the missing annual depreciation of the old machine? Response 4. What would be the annual depreciation of the new machine if purchased? 5. What is the difference between depreciations? (savings between the annual depreciation between the old and the new) 6. What would be the net income for changing the machine? (the savings discounting when taxes would apply + the depreciation that can be applied to the tax shield) 7. Build the flow of investment. What is the NPV of the project? 8. What is the IRR of the change project? (do not use the percent sign) 9. Now suppose that the new machine allows you to launch a product that cannot be done right now. Sales of said SKU would leave an annual margin of normal distribution of $1,000 with a deviation of $50. Add it to the previous flow. What is the GO with those additional revenues? 10. If you wanted to compare 3 or more versions of the project, you should use the Anova difference of means KolmogorovSminoff levene