Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $159,000 and...

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $159,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $96,000, variable costs of $27,350, and fixed costs of $11,950. The project will also require net working capital of $2,550 that will be returned at the end of the project. The company has a tax rate of 35 percent and the project's required return is 9 percent. What is the net present value of this project? (show your work not in excel)

Expert Solution

jeff jeffy answered 1 year ago

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $203,000 and...

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $203,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $140,000, variable costs of $37,900, and fixed costs of $13,050. The project will also require net working capital of $3,650 that will be returned at the end of the project....

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $193,000 and...

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $193,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $130,000, variable costs of $34,900, and fixed costs of $12,800. The project will also require net working capital of $3400 that will be returned at the end of the project....

Delia Landscaping is considering of new 4 year project. the necessary fixed assets will cost $205,000...

Delia Landscaping is considering of new 4 year project. the necessary fixed assets will cost $205,000 and be depreciated on a 3 year MACRS and have no salvage value. the MACRS percentages each year are 33.33% 44.45% and 14.81% and 7.41% respectively. the project will have annual sales of 142,000 variable cost of 38,500 and fix cost of 13,100. the project will also require a networking capital of 3700 and will be returning to end of the project. the company...

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $163,000 and...

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $163,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $100,000, variable costs of $27,450, and fixed costs of $12,050. The project will also require net working capital of $2,650 that will be returned at the end of the project....

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $187,000 and...

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $187,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $124,000, variable costs of $33,100, and fixed costs of $12,650. The project will also require net working capital of $3,250 that will be returned at the end of the project....

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Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $183,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $120,000, variable costs of $31,900, and fixed costs of $12,550. The project will also require net working capital of $3,150 that will be returned at the end of the project....

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