Questions
Compute the payback period for each of these two separate investments: A new operating system for...

Compute the payback period for each of these two separate investments:

  1. A new operating system for an existing machine is expected to cost $240,000 and have a useful life of six years. The system yields an incremental after-tax income of $69,230 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $9,000.
  2. A machine costs $210,000, has a $13,000 salvage value, is expected to last seven years, and will generate an after-tax income of $38,000 per year after straight-line depreciation.

In: Accounting

Compute the payback period for each of these two separate investments: A new operating system for...

Compute the payback period for each of these two separate investments:

A new operating system for an existing machine is expected to cost $240,000 and have a useful life of six years. The system yields an incremental after-tax income of $69,230 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $9,000.

A machine costs $180,000, has a $13,000 salvage value, is expected to last seven years, and will generate an after-tax income of $38,000 per year after straight-line depreciation.

In: Accounting

Starting today, a series of annual desposits is made into a account offering 8 percent compounded...

Starting today, a series of annual desposits is made into a account offering 8 percent compounded annually. The first deposit is $2,000. The second deposit is 2 percent smaller , the first, that is 2000(.98)^1. The third deposit is 2% smaller than the second, that $2,000(.98)^2. This pattern of declining deposits, with each deposit being 2 percent smaller than the previous one, continues until the last deposit is made at the end of year 40, that is, years from today. What will be the balance in the account at the end of year 40, immediate after the last deposit is made?

please show all work algebraically and the explanation. thanks in advance

In: Finance

write java program that prompt the user to enter two numbers .the program display all numbers...

write java program that prompt the user to enter two numbers .the program display all numbers between that are divisible by 7 and 8 ( the program should swap the numbers in case the secone number id lower than first one please enter two integer number : 900 199 Swapping the numbers 224 280 336 392 448 504 560 616 672 728 784 840 896 i need it eclipse

In: Computer Science

write java program that prompt the user to enter two numbers .the program display all numbers...

write java program that prompt the user to enter two numbers .the program display all numbers between that are divisible by 7 and 8 ( the program should swap the numbers in case the secone number id lower than first one

please enter two integer number : 900 199  

Swapping the numbers

224 280 336 392 448 504 560 616 672 728 784 840 896

i need it eclipse

In: Computer Science

Demonstrate the use of CRUNCH tool to create a Wordlist file to generate a minimum and...

Demonstrate the use of CRUNCH tool to create a Wordlist file to generate a minimum and maximum word length (2-9) based on your MIT ID and the first seven numbers and two unique special characters, and store the result in file pass.txt. Give an exampleof two generated passwords with length of three characters, one number and one special character. After that, use the HYDRA attacking tool to attack ftp://192.168.1.3 server which has the username ‘tom’ and password length between 2 and 9, generated by CRUNCH in the previous step.

I'D- MIT191091

In: Computer Science

McCormick & Company is considering a project that requires an initial investment of $24 million to...

McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million.

The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500,000. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax).

To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent.

What will be the value of the plant and equipment for tax purposes in year six? Will it be sold for a gain or a loss, and what will the tax effect be?

In: Finance

McCormick & Company is considering a project that requires an initial investment of $24 million to...

McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million. The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500,000. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax). To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent. Should the project be accepted? question: Find the NPV using the after-tax WACC as the discount rate

In: Finance

McCormick & Company is considering a project that requires an initial investment of $24 million to...

McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million. The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500,000. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax). To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent. question: 6. Create an after-tax cash flow timeline. please show formula used

In: Finance

You are going to receive $100 after one month, $110 after two months, $121 after three and four months, $133.1 after five months

You are going to receive $100 after one month, $110 after two months, $121 after three and four months, $133.1 after five months, $146.41 from month seven to month thirty. What is the present value of all these future cash inflows if the discount rate is 3%?

In: Finance