Question
In: Finance
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters 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 of the project.
If the shop's tax rate is 23 percent and its discount rate is 8 percent, what is the NPV for this project?
Multiple Choice
-
$91,847.97
-
$93,812.17
-
-$14,201.94
-
$96,440.37
-
$87,255.57
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$1,113,600 is estimated to result in $371,200 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 $162,400. The press also requires an initial investment in spare
parts inventory of $46,400, along with an additional $6,960 in
inventory for each succeeding year...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop
is considering a four-year project to improve its production
efficiency. Buying a new machine press for $435,000 is estimated to
result in $175,000 in annual pretax cost savings. The press falls
in the MACRS five-year class, and it will have a salvage value at
the end of the project of $71,000. The press also requires an
initial investment in spare parts inventory of $30,000, along with
an additional $3,600 in inventory for each succeeding year of the...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$816,000 is estimated to result in $272,000 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 $119,000. The press also requires an initial investment in spare
parts inventory of $34,000, along with an additional $5,100 in
inventory for each succeeding year...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$729,600 is estimated to result in $243,200 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 $106,400. The press also requires an initial investment in spare
parts inventory of $30,400, along with an additional $4,560 in
inventory for each succeeding year...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$1,113,600 is estimated to result in $371,200 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 $162,400. The press also requires an initial investment in spare
parts inventory of $46,400, along with an additional $6,960 in
inventory for each succeeding year...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$405,000 is estimated to result in $157,000 in annual pretax cost
savings. The press falls in the MACRS five-year class, and it will
have a salvage value at the end of the project of $57,000. The
press also requires an initial investment in spare parts inventory
of $24,000, along with an additional $3,300 in inventory for each
succeeding year of the...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$854,400 is estimated to result in $284,800 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 $124,600. The press also requires an initial investment in spare
parts inventory of $35,600, along with an additional $5,340 in
inventory for each succeeding year...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$931,200 is estimated to result in $310,400 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 $135,800. The press also requires an initial investment in spare
parts inventory of $38,800, along with an additional $5,820 in
inventory for each succeeding year...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$1,017,600 is estimated to result in $339,200 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 $148,400. The press also requires an initial investment in spare
parts inventory of $42,400, along with an additional $6,360 in
inventory for each succeeding year...
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Masters Machine Shop is considering a four-year project to
improve its production efficiency. Buying a new machine press for
$796,800 is estimated to result in $265,600 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 $116,200. The press also requires an initial investment in spare
parts inventory of $33,200, along with an additional $4,980 in
inventory for each succeeding year...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Suppose a company is looking to hedge a risk in the derivatives market. What, fundamentally, is...
- Training and Development assignment. Describe the usage of Computer Based Training (CBT) in McDonald's Company training...
- PUT IN JAVA PROGRAMMING LANGUAGE The Rectangle class: Design a class named Rectangle to represent a...
- Journal article summary on inter-group conflict Peer Reviewed Journal article from past 3 years. Please include...
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
ADVERTISEMENT