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The Cookie Company is considering adding a new automated baking machine to its production floor. The machine's base price is $ 1 , 7 2
The Cookie Company is considering adding a new automated baking machine to its production floor. The machine's base price is $ and it would cost another $ to install it The machine falls into the MACRS year class, and it would be sold after years for $ The MACRS rates for the first three years are and The machine would require an increase in net working capital inventory of $ The machine would not change revenues, but it is expected to save the firm $ per year in beforetax operating costs, mainly labor. Their marginal tax rate is
What is the Year cash flow?
What are the cash flows in Years and
What is the additional Year cash flow ie the aftertax salvage and the return of working capital
If the projects cost of capital is what is the NPV
Should you pursue this project?
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