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 A proposed cost-saving device has an installed cost of $690,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is$100,000, the marginal tax rate is 24 percent, and the project discount rate is 10 percent. The device has an estimated Year 5 salvage value of $77,000. What level of pretax cost savings do we require for this project to be profitable? MACRS schedule. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Pretax cost Savings: In: Finance ##### Present value of an annuity Consider the following case. ​(Click on the icon located on the​... Present value of an annuity Consider the following case. ​(Click on the icon located on the​ top-right corner of the data table below in order to copy its contents into a​ spreadsheet.)  Amount of annuity Interest rate Period​ (years) ​$58,000 5​% 6

a.  Calculate the present value of the annuity assuming that it is

​1) An ordinary annuity.

​(2) An annuity due.

b.  Compare your findings in parts a​(1) and a​(2).

All else being​ identical, which type of annuitylong dash—ordinary or annuity duelong dash—is preferable? Explain why.

The present value of the ordinary annuity is $_____ In: Finance ##### Market Top Investors, Inc., is considering the purchase of a$340,000 computer with an economic life...

 Market Top Investors, Inc., is considering the purchase of a $340,000 computer with an economic life of five years. The computer will be fully depreciated over five years using the straight-line method, at which time it will be worth$48,000. The computer will replace two office employees whose combined annual salaries are $84,000. The machine will also immediately lower the firm’s required net working capital by$73,000. This amount of net working capital will need to be replaced once the machine is sold. The corporate tax rate is 23 percent. The appropriate discount rate is 10 percent.

 Calculate the NPV of this project.

In: Finance

In: Finance

##### Please answer both questions 1) Suppose a bank quotes $/€ = 1.1045-1.1506. What is the bid-ask... Please answer both questions 1) Suppose a bank quotes$/€ = 1.1045-1.1506. What is the bid-ask spread in percentage? Do not write any symbol. Express your answers as a percentage. Make sure to round your answers to the nearest 100th decimal points. For example, write 12.34 for 12.34%.

2)Suppose a bank quotes S = $1.1045/€. The annualized risk-free interest rates are 4% and 6% in the U.S and Germany, respectively. Find the approximate forward rate for the euro. Do not write any symbol. Make sure to round your answers to the nearest 100th decimal points. For example, write 1.2345 for$1.2345/€.

In: Finance