A semiconductor chip maker purchased a small manufacturing process plant for $2,131,020. The money coming in from that purchase was determined to be $500,000 annually in before-tax cash flow during its 10-year use. The net cash flow after tax is $300,000. If the chip maker wants to realize a 10% return on its investment after tax, for how many more years should the plant operate? (hint, tabloc)
A semiconductor chip maker purchased a small manufacturing process plant for $2,131,020. The money coming in from that purchase was determined to be $500,000 annually in before-tax cash flow during its 10-year use. The net cash flow after tax is $300,000. If the chip maker wants to realize a 10% return on its investment after tax, for how many more years should the plant operate? (hint, tabloc)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 2E
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![A semiconductor chip maker purchased a small manufacturing process plant for
$2,131,020. The money coming in from that purchase was determined to be
$500,000 annually in before-tax cash flow during its 10-year use. The net cash flow
after tax is $300,000. If the chip maker wants to realize a 10% return on its
investment after tax, for how many more years should the plant operate? (hint,
tables)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F030b5318-484a-4980-a406-8d930e3ea1f4%2Fe24706fd-31aa-4b1e-a64c-c71b88fb63ce%2Fsih9d9_processed.png&w=3840&q=75)
Transcribed Image Text:A semiconductor chip maker purchased a small manufacturing process plant for
$2,131,020. The money coming in from that purchase was determined to be
$500,000 annually in before-tax cash flow during its 10-year use. The net cash flow
after tax is $300,000. If the chip maker wants to realize a 10% return on its
investment after tax, for how many more years should the plant operate? (hint,
tables)
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