Ef 290. You have been asked by the president of your company to elaluate the proposed acquisition of a new special-purpose machine The machine's total price including installation and delivery is 570,000. The machine falls into thefour-year class using straight line depreciation method, and it will be sold after four years for 50. The use of this new machine will bring revenue of $35,000 annually for 4 years, and will have annual maintenance expense of$5,000 The firm's marginal tax rate is 40 percent and the required rate of return is 15% (Please show your work)a What is the inital investmentb. What is the Cash Flow at year 1c. What is the Cash Flow at your 4d What is NPV? keep your number as a whole number example of answer format $1000)2(keep your number as a whole number example of answer format $1000)7(keep your number as a whole number example of answer format $1000)?(keep your number to two decimats example of answer format $1000.00 or if its negative, then-S1000.001

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Description: Ef 290. You have been asked by the president of your company to elaluate the proposed acquisition of a new special-purpose machine The machine's total price including installation and delivery is 570,000. The machine falls into thefour-year class usi

Net Present Value (NPV) is the sum of the present value of all the expected cash flow of the…

Business

Finance

You have been asked by the president of your company to elaluate the proposed acquisition of a new special-purpose machine The machine's total price including installation and delivery is $70,000 The machine falls into the our-year class using straight line depreciation method, and it will be sold after four years for 50. The use of this new machine will bring revenue of $35,000 annually for 4 years, and will have annual maintenance expense of $5,000 The Birm's marginal tax rate is 40 percent and the required rate of return is 15% (Please show your work) a What is the intal investment b What is the Cash Flow at year 1 c What is the Cash Flow at year 4 d What is NPV ? keep your number as a whole number example of answer format $1000) 2(keep your number as a whole number example of answer format $1000) 7(keep your number as a whole number example of answer format $1000) (keep your number to two decimats example of answer format $1000.00 or if its negative, then-$1000.00)

You have been asked by the president of your company to elaluate the proposed acquisition of a new special-purpose machine The machine's total price including installation and delivery is $70,000 The machine falls into the our-year class using straight line depreciation method, and it will be sold after four years for 50. The use of this new machine will bring revenue of $35,000 annually for 4 years, and will have annual maintenance expense of $5,000 The Birm's marginal tax rate is 40 percent and the required rate of return is 15% (Please show your work) a What is the intal investment b What is the Cash Flow at year 1 c What is the Cash Flow at year 4 d What is NPV ? keep your number as a whole number example of answer format $1000) 2(keep your number as a whole number example of answer format $1000) 7(keep your number as a whole number example of answer format $1000) (keep your number to two decimats example of answer format $1000.00 or if its negative, then-$1000.00)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 17P

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