|
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $1,104,000 is estimated to result in $368,000 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 $161,000. The press also requires an initial investment in spare parts inventory of $46,000, along with an additional $6,900 in inventory for each succeeding year of the project. |
| Required : |
|
If the shop's tax rate is 32 percent and its discount rate is 16 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
In: Finance
|
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $950,400 is estimated to result in $316,800 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 $138,600. The press also requires an initial investment in spare parts inventory of $39,600, along with an additional $5,940 in inventory for each succeeding year of the project. |
| Required : |
|
If the shop's tax rate is 34 percent and its discount rate is 8 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
In: Finance
|
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $892,800 is estimated to result in $297,600 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 $130,200. The press also requires an initial investment in spare parts inventory of $37,200, along with an additional $5,580 in inventory for each succeeding year of the project. |
|
If the shop's tax rate is 22 percent and its discount rate is 16
percent, what is the NPV for this project? |
Multiple Choice
$-71,139.70
$-67,852.99
$-155,218.67
$-74,696.69
$-67,582.72
In: Finance
Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $604,800 is estimated to result in $201,600 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 $88,200. The press also requires an initial investment in spare parts inventory of $25,200, along with an additional $3,780 in inventory for each succeeding year of the project. If the shop's tax rate is 24 percent and its discount rate is 15 percent, what is the NPV for this project?
Multiple Choice
$-39,393.04
$-37,246.13
$-98,543.35
$-41,362.69
$-37,423.39
In: Finance
|
Geary 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 of the project. |
| Required : |
|
If the shop's tax rate is 34 percent and its discount rate is 11 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
In: Finance
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $1,142,400 is estimated to result in $380,800 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 $166,600. The press also requires an initial investment in spare parts inventory of $47,600, along with an additional $7,140 in inventory for each succeeding year of the project.
Required :If the shop's tax rate is 35 percent and its discount rate is 16 percent, what is the NPV for this project? (Do not round your intermediate calculations.)
In: Finance
|
Geary 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 of the project. |
| Required : |
|
If the shop's tax rate is 34 percent and its discount rate is 11 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
In: Finance
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
In: Finance
|
Geary 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 of the project. |
| Required : |
|
If the shop's tax rate is 34 percent and its discount rate is 11 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
In: Finance
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $624,000 is estimated to result in $208,000 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 $91,000. The press also requires an initial investment in spare parts inventory of $26,000, along with an additional $3,900 in inventory for each succeeding year of the project.
|
If the shop's tax rate is 35 percent and its discount rate is 13 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
In: Finance