1:
IRR | 10.57% |
Year | Initial cost | Tax shield | (Revenue-Cost)*(1-Tax) | Net Cash flows |
0 | -13000000 | -13000000.00 | ||
1 | 303333.33 | 1461842.85 | 1765176.18 | |
2 | 303333.33 | 1461842.85 | 1765176.18 | |
3 | 303333.33 | 1461842.85 | 1765176.18 | |
4 | 303333.33 | 1461842.85 | 1765176.18 | |
5 | 303333.33 | 1461842.85 | 1765176.18 | |
6 | 303333.33 | 1461842.85 | 1765176.18 | |
7 | 303333.33 | 1461842.85 | 1765176.18 | |
8 | 303333.33 | 1461842.85 | 1765176.18 | |
9 | 303333.33 | 1461842.85 | 1765176.18 | |
10 | 303333.33 | 1461842.85 | 1765176.18 | |
11 | 303333.33 | 1461842.85 | 1765176.18 | |
12 | 303333.33 | 1461842.85 | 1765176.18 | |
13 | 303333.33 | 1461842.85 | 1765176.18 | |
14 | 303333.33 | 1461842.85 | 1765176.18 | |
15 | 303333.33 | 1461842.85 | 1765176.18 |
Q2:
NPV | 7486907.95 |
Year | Initial cost | Tax shield | (Revenue-Cost)*(1-Tax) | Net Cash flows |
0 | -15000000 | -15000000.00 | ||
1 | 187500.00 | 2275861.50 | 2463361.50 | |
2 | 187500.00 | 2275861.50 | 2463361.50 | |
3 | 187500.00 | 2275861.50 | 2463361.50 | |
4 | 187500.00 | 2275861.50 | 2463361.50 | |
5 | 187500.00 | 2275861.50 | 2463361.50 | |
6 | 187500.00 | 2275861.50 | 2463361.50 | |
7 | 187500.00 | 2275861.50 | 2463361.50 | |
8 | 187500.00 | 2275861.50 | 2463361.50 | |
9 | 187500.00 | 2275861.50 | 2463361.50 | |
10 | 187500.00 | 2275861.50 | 2463361.50 | |
11 | 187500.00 | 2275861.50 | 2463361.50 | |
12 | 187500.00 | 2275861.50 | 2463361.50 | |
13 | 187500.00 | 2275861.50 | 2463361.50 | |
14 | 187500.00 | 2275861.50 | 2463361.50 | |
15 | 187500.00 | 2275861.50 | 2463361.50 | |
16 | 187500.00 | 2275861.50 | 2463361.50 | |
17 | 187500.00 | 2275861.50 | 2463361.50 | |
18 | 187500.00 | 2275861.50 | 2463361.50 | |
19 | 187500.00 | 2275861.50 | 2463361.50 | |
20 | 187500.00 | 2275861.50 | 2463361.50 |
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $15.00 million fully installed and will be fully depreciated over a 17.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.60 million per year and increased operating costs of $650,283.00 per year. Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $15.00 million fully installed and will be fully depreciated over a 17.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.60 million per year and increased operating costs of $650,283.00 per year. Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $14.00 million fully installed and will be fully depreciated over a 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.62 million per year and increased operating costs of $697,700.00 per year. Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $15.00 million fully installed and will be fully depreciated over a 18.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.69 million per year and increased operating costs of $670,956.00 per year. Caspian Sea Drinks' marginal tax rate is...
#2 Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $12.00 million fully installed and will be fully depreciated over a 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.08 million per year and increased operating costs of $695,817.00 per year. Caspian Sea Drinks' marginal tax rate...
22. Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $14.00 million fully installed and will be fully depreciated over a 19.00 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.20 million per year and increased operating costs of $748,168.00 per year. Caspian Sea Drinks' marginal tax rate...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $12.00 million fully installed and will be fully depreciated over a 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.98 million per year and increased operating costs of $688,241.00 per year. Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $15.00 million fully installed and will be fully depreciated over a 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.04 million per year and increased operating costs of $666,674.00 per year. Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $12.00 million fully installed and will be fully depreciated over a 15 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $2.53 million per year and increased operating costs of $621,174.00 per year. Caspian Sea Drinks' marginal tax rate is...
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $13.00 million fully installed and will be fully depreciated over a 20 year life, then removed for no cost. The RGM-7000 will result in additional revenues of $3.74 million per year and increased operating costs of $568,841.00 per year. Caspian Sea Drinks' marginal tax rate is...