Aditional profits after tax will amount to 18000 per year

Reference no: EM13616653

You are a small business owner and you have the opportunity to expand your facility, which will increase your production capacity over the next 5 years. The expansion will cost $60,000 and additional equipment will cost another $20,000.

Additional profits after tax will amount to $18,000 per year. Your cost of capital is 8%. Should you go ahead with the expansion? Why or why not?

Reference no: EM13616653

Questions Cloud

Trevor price bought 10-year bonds issued by harvest foods : trevor price bought 10-year bonds issued by harvest foods five years ago for 942.69. the bonds make semiannual coupon

A piano tuner stretches a steel piano wire with a tension : a piano tuner stretches a steel piano wire with a tension of 765n . the steel wire has a length of 0.500m and a mass of

Crypton electronics has a capital structure consisting of : crypton electronics has a capital structure consisting of 41 common stock and 59debt. a debt issue of 1000 par value

A bicycle has wheels with a diameter of 0680 m it : a bicycle has wheels with a diameter of 0.680 m. it accelerates uniformly and the rate of rotation of its wheels

Aditional profits after tax will amount to 18000 per year : you are a small business owner and you have the opportunity to expand your facility which will increase your production

Near earth the density of protons in the solar wind a : near earth the density of protons in the solar wind a stream of particles from the sun is 8.60 cm-3 and their speed is

The magnitude jr of the current density in a certain : the magnitude jr of the current density in a certain cylindrical wire is given as a function of radial distance from

An important source of temporary cash is trade credit which : 1. community hospital has annual net patient revenues of 150 million. at the present time payments received by the

Serum ferritin is used in diagnosing iron deficiency in a : serum ferritin is used in diagnosing iron deficiency. in a study conducted recently researchers discovered that in a

User Account

All Pages