Question
You are considering buying an industrial equipment whose price is 475000 The equipment is expected to earn an annual revenue of $200,000. The equipment will
You are considering buying an industrial equipment whose price is 475000
The equipment is expected to earn an annual revenue of $200,000. The equipment will be depreciated under MACRS as a five-year recovery property. The equipment will be used for seven years, at the end of which time, you can sell it for $50,000. Your companys marginal tax rate is 35% over the project period. Perform the following:
a) Determine the net after-tax cash flows for each period over the
b) Net present worth assuming company MARR = 15%.
c) Annual equivalent cash flow company MARR = 15%.
d) IRR of the project.
You are considering buying an industrial equipment whose price is 475000
The equipment is expected to earn an annual revenue of $200,000. The equipment will be depreciated under MACRS as a five-year recovery property. The equipment will be used for seven years, at the end of which time, you can sell it for $50,000. Your companys marginal tax rate is 35% over the project period. Perform the following:
a) Determine the net after-tax cash flows for each period over the
b) Net present worth assuming company MARR = 15%.
c) Annual equivalent cash flow company MARR = 15%.
d) IRR of the project.
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Fundamentals Of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
3rd Edition
0321541642, 9780321541642
