A division of Crane Manufacturing is considering purchasing for $1,830,000 a machine that automates the process...
A division of Crane Manufacturing is considering purchasing for $1,830,000 a machine that automates the process of inserting electronic components onto computer motherboards. The annual cost of operating the machine will be $61,000, but it will save the company $451,000 in labor costs each year. The machine will have a useful life of 10 years, and its salvage value in 10 years is estimated to be $366,000. Straight-line depreciation will be used in calculating taxes for this project, and the marginal corporate tax rate is 32 percent. If the appropriate discount rate is 12 percent, what is the NPV of this project
Homework Answers
net earning per year before
tax and dep = 451000-61000 = 390000$Add Answer to:
A division of Crane Manufacturing is considering purchasing for
$1,830,000 a machine that automates the process...
A division of Sunland Manufacturing is considering purchasing for $1,680,000 a machine that automates the process...
A division of Sunland Manufacturing is considering purchasing for $1,680,000 a machine that automates the process of inserting electronic components onto computer motherboards. The annual cost of operating the machine will be $56,000, but it will save the company $414,000 in labor costs each year. The machine will have a useful life of 10 years, and its salvage value in 10 years is estimated to be $336,000. Straight-line depreciation will be used in calculating taxes for this project, and the...
A division of Ivanhoe Manufacturing is considering purchasing for $1,560,000 a machine that automates the process...
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A division of Ivanhoe Manufacturing is considering purchasing for $1,560,000 a machine that automates the process...
A division of Ivanhoe Manufacturing is considering purchasing for $1,560,000 a machine that automates the process of inserting electronic components onto computer motherboards. The annual cost of operating the machine will be $52,000, but it will save the company $385,000 in labor costs each year. The machine will have a useful life of 10 years, and its salvage value in 10 years is estimated to be $312,000. Straight-line depreciation will be used in calculating taxes for this project, and the...
Larson Manufacturing is considering purchasing a new injection-molding machine for $250,000 to expand its production capacity....
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Daily Enterprises is purchasing a $10.43 million machine. It will cost $70,093.00 to transport and install...
Daily Enterprises is purchasing a $10.43 million machine. It will cost $70,093.00 to transport and install the machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.28 million per year along with incremental costs of $1.50 million per year. Daily's marginal tax rate is 35.00%. The cost of capital for the firm is 13.00%. (answer in dollars. so convert millions to dollars)...
Crane Lumber, Inc., is considering purchasing a new wood saw that costs $55,000. The saw will...
Crane Lumber, Inc., is considering purchasing a new wood saw that costs $55,000. The saw will generate revenues of $100,000 per year for five years. The cost of materials and labor needed to generate these revenues will total $60,000 per year, and other cash expenses will be $10,000 per year. The machine is expected to sell for $4,800 at the end of its five-year life and will be depreciated on a straight-line basis over five years to zero. Crane’s tax...
Daily Enterprises is purchasing a $10.57 million machine. It will cost $59,244.00 to transport and install...
Daily Enterprises is purchasing a $10.57 million machine. It will cost $59,244.00 to transport and install the machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.31 million per year along with incremental costs of $1.20 million per year. Daily’s marginal tax rate is 34.00%. The cost of capital for the firm is 10.00%. (answer in dollars..so convert millions to dollars) A)...
Crane Lumber, Inc., is considering purchasing a new wood saw that costs $55,000. The saw will generate revenues of $100,...
Crane Lumber, Inc., is considering purchasing a new wood saw that costs $55,000. The saw will generate revenues of $100,000 per year for five years. The cost of materials and labor needed to generate these revenues will total $60,000 per year, and other cash expenses will be $10,000 per year. The machine is expected to sell for $3,300 at the end of its five-year life and will be depreciated on a straight-line basis over five years to zero. Crane’s tax...
Crane Lumber, Inc., is considering purchasing a new wood saw that costs $65,000. The saw will...
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Daily Enterprises is purchasing a $10.43 million machine. It will cost $70,093.00 to transport and install the machine. The machine has a depreciable life of five years using the straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.28 million per year along with incremental costs of $1.50 million per year. Daily's marginal tax rate is 35.00%. The cost of capital for the firm is 13.00%. (answer in dollars. so convert millions to dollars)...
Crane Lumber, Inc., is considering purchasing a new wood saw that costs $65,000. The saw will generate revenues of $100,000 per year for five years. The cost of materials and labor needed to generate these revenues will total $60,000 per year, and other cash expenses will be $10,000 per year. The machine is expected to sell for $3,000 at the end of its five-year life and will be depreciated on a straight-line basis over five years to zero. Crane's tax...
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