QuickHelper

(10)

$20/per page/

About QuickHelper

Levels Tought:
Elementary,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Business & Finance,Chemistry,Engineering,Health & Medical Hide all
Teaching Since: May 2017
Last Sign in: 353 Weeks Ago, 2 Days Ago
Questions Answered: 20103
Tutorials Posted: 20155

Education

  • MBA, PHD
    Phoniex
    Jul-2007 - Jun-2012

Experience

  • Corportae Manager
    ChevronTexaco Corporation
    Feb-2009 - Nov-2016

Category > Business & Finance Posted 06 Jun 2017 My Price 13.00

Marketing Capital Investment Decision

Question description

 

 

Isaac, Inc. is thinking about purchasing a new machine.  The new machine would cost $150,000 with an additional $30,000 for delivery of the machine.  The machine will have a life of 5 years and will be depreciated using the straight line method.  The machine can be sold for $25,000 at the end of its life.  This machine is expected to produce cost savings of $35,000 the first two years and $50,000 per year after.  It will take a $10,000 adjustment to net working capital if the machine is purchased.  The company has a required return of 7% and is in the 35% tax bracket.  Calculate the NPV of the project and determine if the company should purchase the machine.

Answers

QuickHelper
(10)
Status NEW Posted 06 Jun 2017 06:06 PM My Price 13.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l

Not Rated(0)