You can buy a printing press for $80,000. You will have to pay labor costs of $20,000 per year due at the beginning of each year for 6 years. You can print and sell 2,000 books per year and sell each for $60 (at the end of each year). Variable costs are $12 per book. At the beginning of each year, you must have NWC equal to 20% of end-of-year net sales. The net working capital will be recouped when the project is terminated after 6 years. The printing press will depreciate to zero over 10 years. You think you can sell the printing press for $40,000 after 6 years. Tax rate is 35%. What are CF from Assets? What is NPV if interest rate is 8%?
In: Finance
Wermers Industries Inc. has developed a new drill press, model LS-88, that is designed to offer superior performance to a comparable drill press sold by Wermers’s main competitor. The competing drill press sells for $31,000 and needs to be replaced after 1,000 hours of use. It also requires $6,000 of preventive maintenance during its useful life. ModelLS-88’s performance capabilities are similar to the competing product with two important exceptions—it needs to be replaced only after 2,000 hours of use and it requires $7,000 of preventive maintenance during its useful life.
From a value-based pricing standpoint what is model LS-88’s economic value to the customer over its 2,000 hour life?
Multiple Choice
$62,000
$36,000
$67,000
$43,000
In: Accounting
Starset Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $470,000 is estimated to result in $196,000 in annual pretax cost savings. The press falls in the 5-year MACRS class, and it will have a salvage value at the end of the project of $72,000. The press also requires an initial investment in spare parts inventory of $37,000, along with an additional $3,950 in inventory for each succeeding year of the project. The shop’s tax rate is 22 percent and its discount rate is 11 percent. (MACRS schedule) Calculate the NPV of this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
MACRS rate: yr1 20%, yr2 32%, yr3 19.2%, yr4 11.52%, yr5 11.52%
In: Finance
Troubleshooting Exchange Server 2013
5 . What is a concern about restoring data to its original location?
6.What are the options for users to restore their own deleted messages? Why would you want to allow them to do this?
Note :Mjackson is a malbox user
In: Computer Science
|
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $1,027,200 is estimated to result in $342,400 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 $149,800. The press also requires an initial investment in spare parts inventory of $42,800, along with an additional $6,420 in inventory for each succeeding year of the project. |
| Required : |
|
If the shop's tax rate is 31 percent and its discount rate is 11 percent, what is the NPV for this project? (Do not round your intermediate calculations.) |
Can you please help me with that one, I keep getting wrong results.
Those are the possible choices:
$1,444.83 $4,446.32 $-115,576.78 $1,517.07 $1,372.59
In: Finance
The Great Outdoors is a company that manufactures canvas used for tents. The company needs to purchase new pressing equipment. The vice president of finance is considering two mutually exclusive presses. Each requires an initial investment of $100,000. The president of the company has stated that he wants a maximum payback period of 4 years. The cash inflows associated with each press are shown in the following table:
Cash Inflows
|
Year |
Press A |
Press B |
|
1 |
$10,000 |
$40,000 |
|
2 |
$20,000 |
$30,000 |
|
3 |
$30,000 |
$20,000 |
|
4 |
$40,000 |
$10,000 |
|
5 |
$20,000 |
$20,000 |
Answer each of the following:
In: Finance
A high-speed multiple-bit drill press costing $1,080,000 has an estimated salvage value of $90,000 and a life of ten years. What is the annual depreciation for each of the first two full years under the following depreciation methods?
Units of production (activity) method (lifetime output is estimated at 110,000 units; the press produced 12,000 units in year one and 18,000 in year two):
Double-declining-balance method:
Year one, $______________.
Year two, $______________.
Units of production (activity) method (lifetime output is estimated at 110,000 units; the press produced 12,000 units in year one and 18,000 in year two):
Year one, $______________.
Year two, $______________.
Sum-of-the-years'-digits method:
Year one, $______________.
Year two, $______________.
Straight-line depreciation method:
Year one, $______________.
Year two, $______________.
In: Accounting
Problem 9-21 Cost-Cutting Proposals [LO 2]
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $491,000 is estimated to result in $190,000 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 $58,000. The press also requires an initial investment in spare parts inventory of $21,600, along with an additional $3,600 in inventory for each succeeding year of the project. The shop’s tax rate is 40 percent and its discount rate is 10 percent.
Calculate the NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Net present value $
In: Finance
Problem 9-21 Cost-Cutting Proposals [LO 2] CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $491,000 is estimated to result in $190,000 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 $58,000. The press also requires an initial investment in spare parts inventory of $21,600, along with an additional $3,600 in inventory for each succeeding year of the project. The shop’s tax rate is 40 percent and its discount rate is 10 percent. Calculate the NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net present value $
In: Finance
Problem 9-21 Cost-Cutting Proposals [LO 2]
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $491,000 is estimated to result in $190,000 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 $58,000. The press also requires an initial investment in spare parts inventory of $21,600, along with an additional $3,600 in inventory for each succeeding year of the project. The shop’s tax rate is 40 percent and its discount rate is 10 percent.
Calculate the NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Net present value $
In: Finance