6. What is the NPV after tax? a. (17,848,921.12) b. (21,629,733.69) The next five questions refer to Auto Assembly machine 2: 7. What is the ATCF in year 2? a. (2,505,000.00) 8. What is the PV after tax in Year 5? b. (5,980,000.00) a. (2,108,408.38) 9. What is the depreciation charge in year 3? a. 2,970,000 b. 1,980,000 c. (17,694,102.22) b. (1,934,319.62) c. (757,500.00) c. (1,774,605.15) c. 2,980,000 d. (22,124,438.38) d. (4,970,000) d. (1,563,084.98) d. 1,970,000
6. What is the NPV after tax? a. (17,848,921.12) b. (21,629,733.69) The next five questions refer to Auto Assembly machine 2: 7. What is the ATCF in year 2? a. (2,505,000.00) 8. What is the PV after tax in Year 5? b. (5,980,000.00) a. (2,108,408.38) 9. What is the depreciation charge in year 3? a. 2,970,000 b. 1,980,000 c. (17,694,102.22) b. (1,934,319.62) c. (757,500.00) c. (1,774,605.15) c. 2,980,000 d. (22,124,438.38) d. (4,970,000) d. (1,563,084.98) d. 1,970,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
please answer letters only
Transcribed Image Text:6. What is the NPV after tax?
a. (17,848,921.12)
b. (21,629,733.69)
The next five questions refer to Auto Assembly machine 2:
7. What is the ATCF in year 2?
a. (2,505,000.00)
8. What is the PV after tax in Year 57
b. (5,980,000.00)
b. (1,934,319.62)
a. (2,108,408.38)
9. What is the depreciation charge in year 3?
a. 2,970,000
b. 1,980,000
blu
c. (17,694,102.22)
c. (757,500.00)
c. (1,774,605.15)
c. 2,980,000
d. (22,124,438.38)
d. (4,970,000)
d. (1,563,084.98)
d. 1,970,000
Transcribed Image Text:Two alternative Auto Assembly machines are being considered for the new one ampere D1F semicondu
production line for ABC company. The Production capacity and productivity of both machines are assumed to be
identical and equally satisfactory.
Auto Assembly machine 1 will cost PHP 15,000,000 and is expected to last for 5 years with expected salvage
value of 1% of equipment cost. Operating costs for Auto Assembly 1 are expected to be 2,000,000 per annum.
Auto Assembly machine 2 will cost PHP 10,000,000 and is expected to last for 5 years with expected salvage
value of 1% of equipment cost. Operating costs for Auto Assembly 2 are expected to be 4,000,000 per annum.
ABC company has a before-tax MARR of 12% and is in the 25% tax bracket. Which Auto Assembly machine
alternative meets the criterion of least cast financially?
Perform a before-tax and an after-tax cash flow analysis based on a straight line depreciation method and
Net Present Value comparison to answer the following questions: Do not round intermediate solutions.
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