the NPW of the project is within $50 of:

Assume everything is given in n=0. CONSTANT dollars unless otherwise stated: Hartsfield Company is considering purchasing a set of machine tools at a cost of $80,000. The purchase is expected to generate revenues of $26,000. The purchase of the tools will also lead to higher operating costs of $6,000 per year in each of the next three years. Additional profits will be taxed at a rate of 40%. The asset falls into CCA Class 45 (rate = 20%) for tax purposes and the 50% rule applies. The project has a three-year life. The constant-dollar market (re-sale) value of the machine tools is expected to fall by 30% annually. The company will require a working capital of $10,000 to be maintained in purchasing power over the lifetime of the project, and can be recovered at the time of the project's completion. The general inflation rate is 8% per year (and affects everything that it normally affects). Assume a MARR' = 5% (Remember to round up/down to whole dollar figures for EVERY entry in the income statement and cash flow statement. Solutions are also rounded to the nearest dollar. Note: 5 rounds up The NPW of the project of the project is within $50 of -11.187 -6857 None of the other answers $10.000 to be maintained in purchasing power over the lifetime of the project and can be recovered at the time of the project's completion. The general inflation rate is 8% per year (and affects everything that it normally affects). Assume a MARR' =5%. (Remember to round up/down to whole dollar figures for EVERY entry in the income statement and cash flow statement. Solutions are also rounded to the nearest dollar. Note: 5 rounds up) The NPW of the project of the project is within $50 of O-11,187 O-6857 None of the other answers O-6510 0-8462 -13,377 o E E M V . Assume everything is given in n=0. CONSTANT dollars unless otherwise stated: Hartsfield Company is considering purchasing a set of machine tools at a cost of $80,000. The purchase is expected to generate revenues of $26,000. The purchase of the tools will also lead to higher operating costs of $6,000 per year in each of the next three years. Additional profits will be taxed at a rate of 40%. The asset falls into CCA Class 45 (rate = 20%) for tax purposes and the 50% rule applies. The project has a three-year life. The constant-dollar market (re-sale) value of the machine tools is expected to fall by 30% annually. The company will require a working capital of $10,000 to be maintained in purchasing power over the lifetime of the project, and can be recovered at the time of the project's completion. The general inflation rate is 8% per year (and affects everything that it normally affects). Assume a MARR' = 5% (Remember to round up/down to whole dollar figures for EVERY entry in the income statement and cash flow statement. Solutions are also rounded to the nearest dollar. Note: 5 rounds up The NPW of the project of the project is within $50 of -11.187 -6857 None of the other answers $10.000 to be maintained in purchasing power over the lifetime of the project and can be recovered at the time of the project's completion. The general inflation rate is 8% per year (and affects everything that it normally affects). Assume a MARR' =5%. (Remember to round up/down to whole dollar figures for EVERY entry in the income statement and cash flow statement. Solutions are also rounded to the nearest dollar. Note: 5 rounds up) The NPW of the project of the project is within $50 of O-11,187 O-6857 None of the other answers O-6510 0-8462 -13,377 o E E M V