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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 of the project. |
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If the shop's tax rate is 21 percent and its discount rate is 18 percent, what is the NPV for this project? Please be as simple as possible but as specific as possible, stating exactly where each number has come f |
from.
In: Finance
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Geary 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 of the project. |
| Required : |
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If the shop's tax rate is 34 percent and its discount rate is 9 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
rev: 09_18_2012
$31,852.06
$33,874.03
$-66,226.29
$33,444.66
$30,259.45
In: Finance
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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 : |
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If the shop's tax rate is 30 percent and its discount rate is 20 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
rev: 09_18_2012
$-147,501.23
$-144,136.65
$-215,451.39
$-154,876.30
$-140,126.17
In: Finance
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Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $547,200 is estimated to result in $182,400 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 $79,800. The press also requires an initial investment in spare parts inventory of $22,800, along with an additional $3,420 in inventory for each succeeding year of the project. |
| Required : |
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If the shop's tax rate is 32 percent and its discount rate is 13 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
Multiple Choice:
$-26,483.98
$-24,701.48
$-84,615.53
$-27,808.17
$-25,159.78
In: Finance
Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $563637 is estimated to result in $178039 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $116017. The press also requires an initial investment in spare parts inventory of $62990, along with an additional $7908 in inventory for each succeeding year of the project. If the shop's tax rate is 0.34 and its discount rate is 0.09, what is the total cash flow in year 4? (Do not round your intermediate calculations.)
(Make sure you enter the number with the appropriate +/- sign
In: Finance
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Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $385,000 is estimated to result in $145,000 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 $45,000. The press also requires an initial investment in spare parts inventory of $20,000, along with an additional $3,100 in inventory for each succeeding year of the project. The shop’s tax rate is 22 percent and its discount rate is 9 percent. Refer to Table 10.7. |
| Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
In: Finance
Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $944,377 is estimated to result in $252,402 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $96,706. The press also requires an initial investment in spare parts inventory of $62,097, along with an additional $7,811 in inventory for each succeeding year of the project. If the shop's tax rate is 0.36 and its discount rate is 0.14, what is the total cash flow in year 4? (Do not round your intermediate calculations.)
(Make sure you enter the number with the appropriate +/- sign)
In: Finance
Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $510,621 is estimated to result in $161,346 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $119,530. The press also requires an initial investment in spare parts inventory of $57,367, along with an additional $8,489 in inventory for each succeeding year of the project. If the shop's tax rate is 0.35 and its discount rate is 0.1, what is the total cash flow in year 4? (Do not round your intermediate calculations.)
(Make sure you enter the number with the appropriate +/- sign)
In: Finance
Geary Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $585,846 is estimated to result in $250,457 in annual pretax cost savings. The press falls in the MACRS five-year class (Refer to the MACRS table on page 277), and it will have a salvage value at the end of the project of $139,172. The press also requires an initial investment in spare parts inventory of $62,850, along with an additional $11,981 in inventory for each succeeding year of the project. If the shop's tax rate is 0.23 and its discount rate is 0.1, what is the total cash flow in year 4? (Do not round your intermediate calculations.)
(Make sure you enter the number with the appropriate +/- sign)
In: Finance
50. Provide common-size analysis of your company’s (La-Z-Boy) income statement and balance sheet for the 2 most recent years (must be done using Excel with formulas).
In: Accounting