i uploaded the pictures backward, the second page is actually the first one. i hope...

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i uploaded the pictures backward, the second page is actually the first one. i hope thats helps
* University Module Sor * Automatica x C Get Homer 355.000+ x G The dudley ard.uvi.edu/bbcswebdav/pid-438569-dt-content-rid-18874208_1/courses/ACC440_FallSemester 2019_1_87285/CB-1.pdf p or me ang 000; this price should remain stable over the net sbc years. The plant is kely to be kept for at least ten more years C Certain nonrecurring market research studies and sales promotion activities will amount to a cost of $500,000 at the end of year 1. The entire amount is deductible in full for income tax purposes in the year of expenditure. D. Additions to working capital will require 5200,000 at the outset and an additional $200,000 at the end of two years. This total is fully recoverable at the end of Six years. E. Net cash inflow from operations before depreciation and income taxes will be $400,000 in years 1 and 2. $600,000 in years 3 through 5, and $100,000 in year 6. The company uses the net present value method in its capital budgeting decisions. Tabulations of differential cash flows are made from year o through year 6. Yearly cash flows are estimated for all items, including capital outlays or recoveries. An applicable discount rate is used to bring all outlays from year 1 through year 6 back to year o f the summation in year is positive, the project is desirable, and vice versa 124. Income tax rates are 36% for ordinary income. Required: Use a net present value analysis to determine whether Dudle should launch the new household product 1 x University of thx Module Six-C X > Automatically X C Got Homeworx Solved) - Spec X vi.edu/bbcswebdav/pid-438569-dt-content-rid-18874208_1/courses/ACC440 Fall Semester 2019_1_87285/CB-1.pdf PROJECT 4 - CAPITAL BUDGETING (C) Discounted cash-flow analysis, straight-line depreciation. Th Dudley Company is trying to decide whether to launch a new household produc Through the years, the company has found that its products have a useful life of si years, after which the product is dropped and replaced by other new product Available data follow: A. The new product will require new special-purpose equipment costing $900,00 The useful life of the equipment is six years, with a $140,000 estimated termina disposal price at that time. However, the income tax authorities will not allow write-off based on a life shorter than nine years. Therefore the new equipment wouk be written off over nine years for tax purposes, using the straight-line depreciation method and assuming zero terminal disposal price B. The new product will be produced in an old plant already owned by Dudley The old plant fas a book value of $30,000 and is being deprecated on a straight-line basis at $3,000 annually. The plant is currently being leased to another company This lesse has six years remaining at an annual rental of $9,000. The lease contains a cancellation clause whereby the landlord can obtain immediate possession of the premises upon payment of $6,000 cash (fully deductible for income tax purposes). The current sales price of the building is $80,000; this price should remain stable over the next six years. The plant is kely to be kept for at least ten more years C Certain nonrecurrin mar a neh shades and cl im

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