CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $407,000 is estimated to result in $150,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $51,000. The press also requires an initial investment in spare parts inventory of $15,600, along with an additional $2,600 in inventory for each succeeding year of the project. The shop’s tax rate is 21 percent and its discount rate is 8 percent. Calculate the project's NPV. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Find Net Present Value:
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Problem 9-21 Cost-Cutting Proposals [LO 2] CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $491,000 is estimated to result in $190,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $58,000. The press also requires an initial investment in spare parts inventory of $21,600, along with an additional $3,600...
CSM Machine Shop is considering a four-year project to improve its production efficiency Buying a new machine press for $407.000 is estimated to result in $150,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $51,000. The press also requires an initial investment in spare parts inventory of $15,600, along with an additional $2,600 in inventory for each succeeding year...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $415,000 is estimated to result in $154,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $55,000. The press also requires an initial investment in spare parts inventory of $16,000, along with an additional $3,000 in inventory for each succeeding year...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $431,000 is estimated to result in $162,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $63,000. The press also requires an initial investment in spare parts inventory of $16,800, along with an additional $3,800 in inventory for each succeeding year...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $417,000 is estimated to result in $155,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $56,000. The press also requires an initial investment in spare parts inventory of $16,100, along with an additional $3,100 in inventory for each succeeding year...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $415,000 is estimated to result in $154,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $55,000. The press also requires an initial investment in spare parts inventory of $16,000, along with an additional $3,000 in inventory for each succeeding year...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $405,000 is estimated to result in $149,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $50,000. The press also requires an initial investment in spare parts inventory of $15,500, along with an additional $2,500 in inventory for each succeeding year...
Item 4 CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $395,000 is estimated to result in $144,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $45,000. The press also requires an initial investment in spare parts inventory of $15,000, along with an additional $2,000 in inventory for each...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $399,000 is estimated to result in $146,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table) and it will have a salvage value at the end of the project of $47,000. The press also requires an initial investment in spare parts inventory of $15,200, along with an additional $2,200 in inventory for each succeeding year...
CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $501,000 is estimated to result in $200,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $63,000. The press also requires an initial investment in spare parts inventory of $22,600, along with an additional $4,600 in inventory for each succeeding year...