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Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing five fully depreciated Vans, which you

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Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing five fully depreciated Vans, which you think you can sell for $3.000 a piece and which you could probably use for another 2 years if you chose not to replace them. The NV vans will cost $29.850 each in the contiguration you want them, and can be depreciated using MACRS Over 5 year life, but you are unable to make use of either bonus depreciation of Section 179 expensing Expected yearly before tax cash savings due to acquiring the new vans amounts to about $3.700 each. If your cost of capitalis 8 percent and your tim faces a 21 percent tax rate, what will the cash flows for this project be? (Round your answers to the nearest dollar amount.) Year 0 1 2 3 4 5 FOS Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing five fully-depreciated vans, which you think you can sell for $3,000 a piece and which you could probably use for another 2 years if you chose not to replace them. The NV vans will cost $29,850 each in the configuration you want them, and can be depreciated using MACRS Over a 5-year life, but you are unable to make use of either bonus depreciation or Section 179 expensing. Expected yearly before-tax cash savings due to acquiring the new vans amounts to about $3,700 each. If your cost of capital is 8 percent and your firm faces a 21 percent tax rate, what will the cash flows for this project be? (Round your answers to the nearest dollar amount.) Year FCF + education.com/Media/Connect Production/Cornette_de/cande Ch 12 MACRS, table.jpg MACRS Depreciation Year 15 S DO 9.50 2 3 303 4445 1481 7:41 000 0.00 DOC 000 0.00 Residential 27.5 BASS 3636 3635 3636 3636 15 2 20 750 7219 5677 6.12 5713 5.285 4888 4522 1462 4451 140 4451 4462 4461 4492 4661 462 3535 3636 9 10 11 12 699 620 5.90 590 591 550 591 590 591 5.90 59 2.95 000 000 000 3627 3630 3637 3636 3637 EL 0:00 000 000 367 14 15 16 17 18 19 20 21 22 000 000 000 0.00 0:00 000 000 000 Normal Recovery Period 5 7 10 20.00 14 1000 22.00 2449 1800 17:49 1440 1152 1152 8.92 9:22 S 192 37 000 193 655 0.00 6:55 0.00 0.00 8.56 0.00 0.00 655 0.00 0:00 3.28 0.00 0:00 0.00 0.00 0.00 000 000 000 0:00 0.00 0:00 000 0.00 0.00 0.00 000 000 000 0.00 0.00 0:00 000 000 300 000 0:00 000 0:00 000 0.00 000 000 DO 000 0:00 0.00 000 0.00 000 0.00 000 DOO 0.00 0.00 000 000 Dod 0.00 000 000 0.00 000 000 000 00 000 0.00 000 000 000 000 000 000 000 000 1662 4461 3637 3636 3637 306 3637 3.635 Real Estate Nonresidential 315 39 2011 3175 3-75 2564 2564 3175 3175 2564 3175 3.75 34174 2564 3.175 3174 2.554 3.175 2564 3.174 2564 3175 2564 3.174 2.554 3.175 2.564 3.174 2564 3175 2.56 3.174 2564 3.175 2.564 3.174 3.175 2564 3174 2564 3.75 2564 3.174 2564 2564 3.174 2564 3.175 2564 3174 3.175 3564 3.174 2564 1.770 2.560 0.00 2564 0.00 2564 D.CO 2564 000 0.00 2564 0.00 256 000 2.504 DO 000 000 24 25 0.00 000 ODO 000 ODO 0.00 0.00 0.00 000 0.00 000 000 000 000 000 GOO 000 000 27 28 000 000 000 000 000 30 31 36 3637 9636 1970 000 000 000 000 0.00 000 0100 000 000 0.00 000 000 000 0010 000 000 000 000 2 CE DE 000 000 000 000 000 000 000 000 000 30 000 000 000 0.00 000 000 0.00 000 0100 0.00 90 DOO 38 000 000 600 000 000 000 000 OD 000 000 000 0.00 DO 0000 Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing five fully-depreciated vans, which you think you can sell for $3,000 a piece and which you could probably use for another 2 years if you chose not to replace them. The NV vans will cost $29,850 each in the configuration you want them, and can be depreciated using MACRS over a 5-year life, but you are unable to make use of either bonus depreciation of Section 179 expensing. Expected yearly before-tax cash savings due to acquiring the new vans amounts to about $3.700 each. If your cost of capital is 8 percent and your firm faces a 21 percent tax rate what will the cash flows for this project be? (Round your answers to the nearest dollar amount.) 5 Year |FCF

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