Calculate the npv of project-caradoc machine shop

Assignment Help Operation Management
Reference no: EM132692318

Caradoc Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $427,000 is estimaed to result in $167,000 in annual pre-tax cost savings. The press falls into Class 8 for CCA purposes (CCA rate of 20% per year), and it will have a salvage value at the end of the project of $56,700. The press also requires an initial investment in spare parts inventory of $37,000, along with an additional $4,800 in inventory for each succeeding year of the project. If the shop's tax rate is 35% and its discount rate is 9%.

Calculate the NPV of this project.

Reference no: EM132692318

Questions Cloud

Create an art piece of photography or cinematography : Select a photograph or film art piece to use as a point of inspiration. Create an art piece of photography or cinematography inspired by your selected art.
Compute the comprehensive income for Chewco Co : The net income of Chewco Co. was $50,000 for Year 1. Compute the comprehensive income for Chewco Co. for the year ended December 31, Year 1
What is the implied volatility of options : What is the implied volatility of these options, in Percent, rounded to the nearest percent?
What is magnetic imaging division residual income for year : Top management of Medical Diagnostics, Inc., has set a minimum required rate of return, What is the Magnetic Imaging Division's residual income for the year?
Calculate the npv of project-caradoc machine shop : Caradoc Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $427,000 is estimaed to result
Describe five brand touchpoints : Name and describe five brand touchpoints using one touchpoint for each phase of the consumer buying process.
Calculate the ytm : Mr. Will offers the price of $110,145,246.91 for Depma Corp. bond to Mr. Chandra. Calculate the YTM!
Explain the change in Investment in Raven Company Stock : The fair value of the Raven Company stock investment on December 31, Year 2, was $310 million. Explain the change in Investment in Raven Company Stock
Describe what life span considerations you might use : Describe what life span considerations you might use in applying the nursing process to infants, school-age children, younger adults, and older adults.

Reviews

Write a Review

Operation Management Questions & Answers

  Explain why they achieved success or why they failed

Explain a global business and how they expanded into a country. Explain why they achieved success or why they failed.

  Process groups under project integration process groups

List the Process groups under Project “Integration Process Groups”. Define the role of a project manager.

  Determine the level of an? employee effort

Which of the following is an example of a question a manager would ask to determine the level of an? employee's effort?

  What business have you always dreamed of starting

The Small Business Administration is a tremendous resource for would be entrepreneurs. Research their resources for business plans and financing.

  What can leaders learn from NASA and the space race

What can leaders learn from NASA and the space race?

  Competitor product to improve company products

Which of the following describes the dismantling of a competitor's product to improve a company's products?

  What clarification do you need regarding the posting

What differences or similarities do you see between your posting and other classmates' postings? What clarification do you need regarding the posting?

  Characteristics to consider for management-leadership theory

Different types of characteristics to consider for each management or leadership theory are (select three):

  Important for project manager to control scope creep

Why it is important for the project manager to control scope creep.

  These countries became suppliers to the software industry

Why do you think these countries became suppliers to the software industry?

  Describe the impact of legislation on the field

Describe the impact of legislation on the field of compensation management.

  Case study american water keeps data flowing

How did the implementation of a data warehouse help American Water move toward a more centralized organization? What data quality issues the company could have faced if they did not clean and organize the data?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd