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Given: Investment: Trucks 3 @ $45,000 each w/3yr MACRS Machinery = $750,000 w/ 7-yr MACRS Sell at end of Project: Trucks - $10,000 each Machinery - $150,000 Project Life = 5-Years Working capital: Account Receivables - 1.5 Months Accounts Payables - 1-month Finished Goods Inventory - 1 month Raw Material Inventory - 1-Month Product Selling Price - $250/unit Labor - $25/unit Materials - $40/unit Overhead - $200,000/year Annual quantity 5,000 Blended Income Tax Rate: 43% MARR - 15% 20 Find: Show answers in your worksheet Project Cash Flows Depreciation Gains/Loss Tax Working Capital IRR NPV 8 Points 2 Points 1 Point 2 Points 1 Point 1 Point Problem #1 MACRS Table Problem #2 D P - + 100% Given: Investment: Trucks 3 @ $45,000 each w/3yr MACRS Machinery = $750,000 w/ 7-yr MACRS Sell at end of Project: Trucks - $10,000 each Machinery - $150,000 Project Life = 5-Years Working capital: Account Receivables - 1.5 Months Accounts Payables - 1-month Finished Goods Inventory - 1 month Raw Material Inventory - 1-Month Product Selling Price - $250/unit Labor - $25/unit Materials - $40/unit Overhead - $200,000/year Annual quantity 5,000 Blended Income Tax Rate: 43% MARR - 15% 20 Find: Show answers in your worksheet Project Cash Flows Depreciation Gains/Loss Tax Working Capital IRR NPV 8 Points 2 Points 1 Point 2 Points 1 Point 1 Point Problem #1 MACRS Table Problem #2 D P - + 100%

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