- cash flow define
- your cash flow
- capital market research
A new machine’s price is $50,000 plus an additional $10,000 for shipping and installation. The machine falls into the MACRS three year class, and hence the tax depreciation allowances are .33, .45 and .15 in Years 1, 2 and 3 respectively. The machine will be sold at the end of three years for $20,000. The machine will have no effect on revenues, but will save $20,000 per year in before-tax operating costs. The firm’s tax rate is 40 percent and its appropriate cost of capital is 10%.
What is the NPV of the project, should it be accepted?
(Points : 1)
($1,049), yes
$1,500 , yes
($1,049), no
($1,500), yes
What is the NPV of the project, should it be accepted?
(Points : 1)
($1,049), yes
$1,500 , yes
($1,049), no
($1,500), yes
Finance Calculation Help Please?
没有评论:
发表评论