The Esmayao Collegiate Dog Corporation, needs to buy a machine so that Tarzan and Jane can...

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The Esmayao Collegiate Dog Corporation, needs to buy a machineso that Tarzan and Jane can raise their paw and then release atrickle of water to prevent bad smells and health problems. Thereis one per Amazon that the initial net investment = $ 31,400. Dr.Agustín Rullán gives permission for the machine to be purchased andinstalled. Dr. Rullan does not know which type of depreciation touse, whether linear or MACRS. The machine can be depreciated for 7years, the depreciation base is $ 32,000. The difference inrevenues will be zero for the next 20 years, the change inoperational cost remains constant at $ 9,000 per year and there isno residual value of the machine nor is it necessary to changeworking capital. Estimate what the NPV will be with bothdepreciations if WACC = 12%, Tax = 40% and what you recommend tothe principal. (20 points)

The Esmayao Dog Corporation developed a better machine than theprevious problem, because the trickle of water contains the smellof roses and a dispenser of bones. The NINV = $ 80,000, which isits base for depreciation, can be depreciated for 7 years by MACRSand the project lasts 10 years. In the first year, UPRM expectsrevenues of $ 100,000 that it expects to grow at 7% per year, anoperating cost of $ 50,000 in the first year that is expected togrow at 8% per year and average taxes are 40% and WACC = twenty%.(30 points)
to. Calculate the NPV of this project and present a table thatcontains all the analysis of Income, Costs, Depreciation, EBT, Tax,EAT.
b. Calculate the Payback Period.
c. Calculate the PI
d. Calculate the IRR. How many IRR do you have and why?
Note: do the answer in a spreed sheet of Microsoft Excel

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years 1 2 3 4 5 6 7 8 9 10 Total Revenue 10000000 10700000 11449000 12250430 13107960 14025517 15007304 16057815 17181862 18384592 Opearting cost 5000000 5400000 5832000 6298560 6802445 7346640 7934372 8569121 9254651 9995023 Depreciation 1142857 1142857 1142857 1142857 1142857 1142857 1142857 profit 3857143 4157143 4474143 4809013 5162658 5536020 5930075 7488693 7927211 8389569 tax 1542857 1662857 1789657 1923605 2065063 2214408 2372030 2995477 3170884 3355828 Profit after tax 2314286 2494286 2684486 2885408 3097595 3321612 3558045 4493216 4756326 See Answer

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The Esmayao Collegiate Dog Corporation, needs to buy a machineso that Tarzan and Jane can raise their paw and then release atrickle of water to prevent bad smells and health problems. Thereis one per Amazon that the initial net investment = $ 31,400. Dr.Agustín Rullán gives permission for the machine to be purchased andinstalled. Dr. Rullan does not know which type of depreciation touse, whether linear or MACRS. The machine can be depreciated for 7years, the depreciation base is $ 32,000. The difference inrevenues will be zero for the next 20 years, the change inoperational cost remains constant at $ 9,000 per year and there isno residual value of the machine nor is it necessary to changeworking capital. Estimate what the NPV will be with bothdepreciations if WACC = 12%, Tax = 40% and what you recommend tothe principal. (20 points)The Esmayao Dog Corporation developed a better machine than theprevious problem, because the trickle of water contains the smellof roses and a dispenser of bones. The NINV = $ 80,000, which isits base for depreciation, can be depreciated for 7 years by MACRSand the project lasts 10 years. In the first year, UPRM expectsrevenues of $ 100,000 that it expects to grow at 7% per year, anoperating cost of $ 50,000 in the first year that is expected togrow at 8% per year and average taxes are 40% and WACC = twenty%.(30 points)to. Calculate the NPV of this project and present a table thatcontains all the analysis of Income, Costs, Depreciation, EBT, Tax,EAT.b. Calculate the Payback Period.c. Calculate the PId. Calculate the IRR. How many IRR do you have and why?Note: do the answer in a spreed sheet of Microsoft Excel