Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. need part c and d as well please! the campbel

Need part c and d as well please! The Campbell...

90.2K

Verified Solution

Question

Accounting

Need part c and d as well please!
image
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,100,000, and it would cost another $17,000 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after 3 years for $642,000. The machine would require an increase in net working capital (inventory) of $17,000. The sprayer would not change revenues, but it is expected to save the firm 5436,000 per year in before tax operating costs, mainly labor. Campbell's marginal tax rate is 40% Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar. a. What is the Year 0 net cash flow? 5 - 1134000 b. What are the net operating cash flows in Years 1, 2, and 3? Year 15 410518 Year 2:5 460202 Year : 327771 What is the additional Year 3 cash flow (le, the after tax salvage and the return of working capital? $ 402200 d. If the project's cost of capital is 11 , what is the NPV of the project? 13786433

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