PLEASE DO NO USE EXCEL, as we are not able to use excel on our test...

PLEASE DO NO USE EXCEL, as we are not able to use excel on our test

XYZ company is considering a new machine that costs $300,000 and would reduce pre-tax manufacturing costs by $108,000 annually. XYZ would use the 3-year MACRS method to depreciate the machine, and management thinks the machine would have a value of $23,000 at the end of its 5-year operating life. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The net operating working capital (NOWC) would increase by $25,000 initially, but it would be recovered at the end of the project's 5-year life. XYZ's marginal tax rate is 40-percent, and a 10% WACC is appropriate for the project. a) Calculate the projects NPV, IRR, and Payback. b) Assume management is unsure about the $90,000 cost savings, and this figure could deviate by as much as +/- 15%. What would the NPV have to be under each of these situations?

Expert Solution

jeff jeffy answered 1 year ago

PLEASE DO NOT USE EXCEL, as we cannot use excel on our test. The Wagner Company...

PLEASE DO NOT USE EXCEL, as we cannot use excel on our test. The Wagner Company currently uses an injection-molding machine that was purchased 2 years ago. This machine is being depreciated on a straight-line basis, and it has 6-years of remaining life. Its current book value is $2,100, and it can be sold for $2,500 at this time. Thus, the annual depreciation expense is $350 [($2,100/6) = $350 per year]. If the old machine is not replaced, it can...

Please do not use Excel to answer this. I need the computations as we are not...

Please do not use Excel to answer this. I need the computations as we are not allowed to use excel. Sequential Method Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments Producing Departments Power General Factory Purchasing Pesticide Liquid Fertilizer Overhead $80,000 $312,000 $165,000 $78,500 $107,400 Square feet 1,500...

Why do we test the null hypothesis and not our research hypothesis?

We are now going to use Excel to test a hypothesis based on one given sample....

We are now going to use Excel to test a hypothesis based on one given sample. We would like to know if the average cholesterol level of patients in intensive care is equal to 200 and for that reason we collect cholesterol level of 20 random people from various intensive care units. Cholesterol level 154,168,134,201,208,220,225,228,201,207,168,211,203,254,268,198,298,135,154,189 We put our data in column A. In Cells A3-A22 we type our data and in cell A1 we type Cholesterol. First let’s input the...

Chi Square Test We will now use Excel to run an example of a chi square...

Chi Square Test We will now use Excel to run an example of a chi square test. Chi square test is checking the independence of two variables. Our example will test if taking hormonal pills and being overweight are related. We will test the independence on 200 random patients. Thus, N=200. They will be divided first into two groups, those who take hormonal pills and those who do not. Second, they will be divided into three groups based on weight,...

Do our personal ethics change with the anonymities we use online?

What are two things in the repeated measure anova test that we can do in our...

What are two things in the repeated measure anova test that we can do in our study that would increase our power?

PLEASE DO BY HAND AND NOT EXCEL Suppose we have the following data on variable X...

PLEASE DO BY HAND AND NOT EXCEL Suppose we have the following data on variable X (independent) and variable Y (dependent): X Y 2 70 0 70 4 130 a. Test to see whether X and Y are significantly related using a t-test on the slope of X. Test this at the 0.05 level. b. Test to see whether X and Y are significantly related using an F-test on the slope of X. Test this at the 0.05 level.

Do your work in an Excel file. Make Excel do the test statistic calculation.!!!!!!!!! Do people...

Do your work in an Excel file. Make Excel do the test statistic calculation.!!!!!!!!! Do people generally receive the asking price when they sell their home? The accompanying table lists the asking price and sale price for a random sample of ten single-family home sales in Tahlequah, OK. Home Asking price Selling price 1 98,000 94,300 2 122,500 119,800 3 109,900 105,000 4 98,000 100,000 5 79,900 77,000 6 275,000 265,000 7 99,700 96,000 8 97,900 99,200 9 209,000 209,000...

please use excel to do it. it also need to come with formula. formula is very...

please use excel to do it. it also need to come with formula. formula is very important. many many thanks. Prepare a sales budget for January through March and for the Quarter in total. The selling price per unit is $50.00. December of the previous year 20,000 January 100,000 February 80,000 March 60,000 April 40,000 2. Prepare a purchases budget and the schedule for Disbursements for Purchases for January through March and for the first quarter in total. Assume...

Question