Determine what is the present worth of the project

Reference no: EM13231413

An asset in the 5-yr. MACRS property class cost $100,000 and has no salvage value after six years of use. The asset will generate $300,000 in annual revenues and will require $100,000 in annual labor costs and $50,000 in annual materials costs. Assume tax rate of 40% and MARR = 12%.

a. What is the Present Worth of the project?

b. Should the project be accepted?

Reference no: EM13231413

Questions Cloud

What types of business decisions or reports can be made : Provide an example of a company you believe has a good network design, providing supporting rationale on why that network is effective and what types of business decisions or reports can be made from its utility.

If companys marr is 15 should the machine be purchased now : Seven years ago a vertical drill was purchased for $10,000. Drill had 12 years of expected life and zero estimated value at the end of that period. The current market value of the drill is $1,000. The new drill's total investment cost would be $12..

Determine how the same focus on quality demonstrated : From the video "Barcelona Restaurant Group", determine how the same focus on quality demonstrated by the Barcelona Restaurant Group could benefit manufacturing operations. Provide specific examples to support your response.

Explain what is the geometric structure of acetone : What is the geometric structure of acetone (CH3)2CO. Indicate the bond angles and specify if they are non-ideal. Help?

Determine what is the present worth of the project : An asset in the 5-yr. MACRS property class cost $100,000 and has no salvage value after six years of use. The asset will generate $300,000 in annual revenues and will require $100,000 in annual labor costs and $50,000 in annual materials costs.

What is the increment in income tax caused by the purchase : A small manufacturing company has an estimated annual taxable income of $95,000. Due to an increase in business, the company is considering purchasing a new machine that will generate additional before-tax annual revenue of $50,000

Define the temperature of the gas in the bulb : A mercury nanometer contains 2 g of Ar. A burner heats it to P-ext. at 760 torr. What is the Temperature of the gas in the bulb when the total volume is 3 L and H=76mm?

Manage project risk using proper writing mechanics : Describe to your project sponsor how you intend to develop and implement an infrastructure of your project's management systems, focusing on at least two (2) significant unk-unks.

Decide goal with respect to customer- relationship building : On-Time Technology Products recognizes that they should do more to connect with customers after a sale.

User Account

All Pages