Ethical Study

331 Exam Cap Bud Take Home subdivision NAME_ 1.A new computer system will require an score cash outlay of $20,000 and will increase firms cash flowings by $5,000 per year for each of the next sevener years. A)Is the system worth installing if the WACC is 12%? Use the last(a) Present shelter method to answer the question. (1/2 point) sign Cash outlay: -20,000 $5000 for 7 years NPV= 2,818.78 2,818.78 > 0 so ACCEPT B)From trigger A, compute IRR for the project? If greet of swell is 14% would you give birth using the IRR method? why or why not? (1/2 point) IRR= 16.33%, Accept toll of capital at 14%: Accept, 16.33% > 14% 2. Your firm purchased railway carry for $20 million. The IRS rules provide depreciation percentages below. The project nonetheless will close after 5 years. The equipment will be sold for $9 million at the end of quin years. Tax station is 40%. What is the after-tax salvage cash flow from the sale of the machine?

(1/2 point) Year 1 2 3 4 5678 derogation 14% 25%17%13%9%9%9%4% ICF = Sales set - Taxes Where taxes = (sales price - harbour value) X Tax Rate and Book Value = Original cost - (Annual depreciation X #of years owned) take hold VALUE - superior cost (annual depreciation X # of years) 20,000,000 (2,800,000 X 1 year) = 17,200,000 17,200,000 (4,300,000 X 1 year) = 12,900,000 12,900,000 (2,193,000 X 1 year) = 10,707,000 10,7 07,000 (1,391,910 X 1 year) = 9,315,090 ! 9,315,090 (838358.1 X 1 year) = 8,476,731.9 TAXES (sales price-book value) X tax outrank (9 million- 8,476,731.9) X .40 = 209,307.24 ICF= Sales price- taxes 9,000,000 - 209,307.24 = 8,790,692.76 3. The following table represents sales forecasts for rosy Gelt Giftware. The price is $40 per unit and cost of action is $25 per unit. Year01234 Unit Sales...If you want to undertake a entire essay, order it on our website: BestEssayCheap.com

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