Question
In: Finance
Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $563637 is estimated to result in $178039 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $116017. The press also requires an initial investment in spare parts inventory of $62990, along with an additional $7908 in inventory for each succeeding year of the project. If the shop's tax rate is 0.34 and its discount rate is 0.09, what is the total cash flow in year 4? (Do not round your intermediate calculations.)
(Make sure you enter the number with the appropriate +/- sign
Solutions
Expert Solution
I HAVE SOLVED FULL SUM.
TOTAL CASH FLOW IN YEAR 4 = + 335982.30 (OPERATING CASH
FLOW + RECOVERY WORKING CAPITAL + AFTER TAX SALVAGE
VALUE)
jeff jeffy answered 7 months agoRelated Solutions
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve
its production efficiency. Buying a new machine press for
$1,132,800 is estimated to result in $377,600 in annual pretax cost
savings. The press falls in the MACRS five-year class (MACRS
Table), and it will have a salvage value at the end of the project
of $165,200. The press also requires an initial investment in spare
parts inventory of $47,200, along with an additional $7,080 in
inventory for each succeeding year...
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve
its production efficiency. Buying a new machine press for $950,400
is estimated to result in $316,800 in annual pretax cost savings.
The press falls in the MACRS five-year class (MACRS Table), and it
will have a salvage value at the end of the project of $138,600.
The press also requires an initial investment in spare parts
inventory of $39,600, along with an additional $5,940 in inventory
for each succeeding year...
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve
its production efficiency. Buying a new machine press for $566,400
is estimated to result in $188,800 in annual pretax cost savings.
The press falls in the MACRS five-year class (MACRS Table), and it
will have a salvage value at the end of the project of $82,600. The
press also requires an initial investment in spare parts inventory
of $23,600, along with an additional $3,540 in inventory for each
succeeding year...
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve
its production efficiency. Buying a new machine press for
$1,152,000 is estimated to result in $384,000 in annual pretax cost
savings. The press falls in the MACRS five-year class (MACRS
Table), and it will have a salvage value at the end of the project
of $168,000. The press also requires an initial investment in spare
parts inventory of $48,000, along with an additional $7,200 in
inventory for each succeeding year...
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve
its production efficiency. Buying a new machine press for $969,600
is estimated to result in $323,200 in annual pretax cost savings.
The press falls in the MACRS five-year class (MACRS Table), and it
will have a salvage value at the end of the project of $141,400.
The press also requires an initial investment in spare parts
inventory of $40,400, along with an additional $6,060 in inventory
for each succeeding year...
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve
its production efficiency. Buying a new machine press for $844,800
is estimated to result in $281,600 in annual pretax cost savings.
The press falls in the MACRS five-year class (MACRS Table), and it
will have a salvage value at the end of the project of $123,200.
The press also requires an initial investment in spare parts
inventory of $35,200, along with an additional $5,280 in inventory
for each succeeding year...
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve
its production efficiency. Buying a new machine press for $547,200
is estimated to result in $182,400 in annual pretax cost savings.
The press falls in the MACRS five-year class (MACRS Table), and it
will have a salvage value at the end of the project of $79,800. The
press also requires an initial investment in spare parts inventory
of $22,800, along with an additional $3,420 in inventory for each
succeeding year...
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve
its production efficiency. Buying a new machine press for $547,200
is estimated to result in $182,400 in annual pretax cost savings.
The press falls in the MACRS five-year class (MACRS Table), and it
will have a salvage value at the end of the project of $79,800. The
press also requires an initial investment in spare parts inventory
of $22,800, along with an additional $3,420 in inventory for each
succeeding year...
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve
its production efficiency. Buying a new machine press for
$1,094,400 is estimated to result in $364,800 in annual pretax cost
savings. The press falls in the MACRS five-year class (MACRS
Table), and it will have a salvage value at the end of the project
of $159,600. The press also requires an initial investment in spare
parts inventory of $45,600, along with an additional $6,840 in
inventory for each succeeding year...
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve
its production efficiency. Buying a new machine press for $681,600
is estimated to result in $227,200 in annual pretax cost savings.
The press falls in the MACRS five-year class (MACRS Table), and it
will have a salvage value at the end of the project of $99,400. The
press also requires an initial investment in spare parts inventory
of $28,400, along with an additional $4,260 in inventory for each
succeeding year...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Paste Corporation has established new plant for the production of new product called “Diazinon”. There are...
- C++ C++ Write a definition for a structure type for records for CDs. The record contains...
- Research Question: Does the spatial ability differ by biological sex? (Use Data A) Null Hypothesis: Spatial...
- Write a method speedingTicket() that decides whether a driver should be given a ticket from a...
- Beasley Ball Bearings paid a $4 dividend last year. The dividend is expected to grow at...
- 7. In order to improve the network performance and security, ACLs is recommended. Please explain what...
- Noting that there has been an increasing interest in organic foodstuffs with increasing affluence, Mr Tommy...
ADVERTISEMENT