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9. Problem 12.09 (New Project Analysis) eBook You must evaluate a proposal to buy a new...
9. Problem 12.09 (New Project Analysis) eBook You must evaluate a proposal to buy a new milling machine. The base price is $104,000, and shipping and installation costs would add another $8,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $36,400. The applicable depreciation rates are 33 %, 45 % , 15 %, and 7 %. The machine would require a $4,500 increase in net operating working capital (increased inventory less...
7. Problem 12.09 (New Project Analysis) eBook You must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine, including shipping and installation costs, is $174,000, and the equipment will be fully depreciated at the time of purchase. The machine would be sold after 3 years for $70,000. The machine would require a $6,500 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but...
NEW PROJECT ANALYSIS You must evaluate a proposal to buy a new milling machine. The base price is $195,000, and shipping and installation costs would add another $17,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $87,750. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $8,500 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on...
NEW PROJECT ANALYSIS You must evaluate a proposal to buy a new milling machine. The base price is $193,000, and shipping and installation costs would add another $10,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $125,450. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $7,500 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on...
NEW PROJECT ANALYSIS You must evaluate a proposal to buy a new milling machine. The base price is $164,000, and shipping and installation costs would add another $11,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $73,800. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $8,000 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on...
NEW PROJECT ANALYSIS You must evaluate a proposal to buy a new milling machine. The base price is $173,000, and shipping and installation costs would add another $7,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $103,800. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $9,000 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on...
NEW PROJECT ANALYSIS You must evaluate a proposal to buy a new milling machine. The base price is $154,000, and shipping and installation costs would add another $20,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $92,400. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $5,000 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on...
You must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine, including shipping and installation costs, is $198,000, and the equipment will be fully depreciated at the time of purchase. The machine would be sold after 3 years for $127,000. The machine would require a $3,500 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $54,000...
You must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine, including shipping and installation costs, is $191,000, and the equipment will be fully depreciated at the time of purchase. The machine would be sold after 3 years for $111,000. The machine would require a $3,500 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $58,000...
You must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine, including shipping and installation costs, is $122,000, and the equipment will be fully depreciated at the time of purchase. The machine would be sold after 3 years for $47,000. The machine would require a $7,500 increase in net operating working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $30,000...