Como ha decided to look at a new automated section of manufacturing equipment in Sink...

60.1K

Verified Solution

Question

Finance

image
Como ha decided to look at a new automated section of manufacturing equipment in Sink spent $5,000 on a study that researched the various models of the end o the model that will have antalled cost of $350.000 the equipment will be depreciated aight to ever it's five year life, at the end of which parts of the equipment can be sold for $35.000. The equipment will save the mo pritor perating costs and the system requires an initial investment in net working capital of $14.500 Assume a tax rate is 35% and the relevant discount rate i 12% What is the amount of annual depreciation? S d what is the amount of annual OCFTS d) What is the after-tax salvage value? S What is the total amount of the cash flow in year 5? $ What is the NPV for this project (rounded to the nearest dollar) Should the project be accepted or rejected # Como ha decided to look at a new automated section of manufacturing equipment in Sink spent $5,000 on a study that researched the various models of the end o the model that will have antalled cost of $350.000 the equipment will be depreciated aight to ever it's five year life, at the end of which parts of the equipment can be sold for $35.000. The equipment will save the mo pritor perating costs and the system requires an initial investment in net working capital of $14.500 Assume a tax rate is 35% and the relevant discount rate i 12% What is the amount of annual depreciation? S d what is the amount of annual OCFTS d) What is the after-tax salvage value? S What is the total amount of the cash flow in year 5? $ What is the NPV for this project (rounded to the nearest dollar) Should the project be accepted or rejected #

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students