Reference no: EM132718371
The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $930,000, and it would cost another $24,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $527,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in net working capital (inventory) of $12,500. The sprayer would not change revenues, but it is expected to save the firm $372,000 per year in before-tax operating costs, mainly labor. Campbell's marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.
Problem 1: What is the Year-0 net cash flow?
Problem 2: What are the net operating cash flows in Years 1, 2, and 3?
Problem 3: What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)?
Problem 4: If the project's cost of capital is 14%, what is the NPV of the project?
Problem 5: Should the machine be purchased?
|
Components in empowering organization
: Risk management is one of the most important components in empowering an organization to achieve its ultimate vision.
|
|
What are your reactions to each type of disorder
: Discuss factitious disorder, malingering, and somatic symptom disorders. What are your reactions to each type of disorder? Do you think they are "legitimate".
|
|
Make all necessary journal entries for cullumber
: Make all necessary journal entries for 2020 for Cullumber and Pharoah. Cullumber Inc. acquired 10% of the 424,000 shares of common stock of Schuberger
|
|
Explain the role of human resources regarding standards
: Explain the role of Human Resources regarding these standards. How can disregarding these standards have an impact on the workplace?
|
|
Find what is the additional year-three cash flow
: The Campbell Company is considering adding robotic paint.What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)?
|
|
Implementing new interorganizational system
: You are a member of the Human Resource Department of a medium-sized organization that is implementing a new interorganizational system that will impact employee
|
|
Discuss the history and criteria for diagnosis
: Discuss the history, characteristics, symptoms, and criteria for diagnosis, causes, risks, and treatments of anorexia nervosa and bulimia nervosa.
|
|
Policy informatic analysts
: Additionally, policy analysts must possess the capacity to understand how policies are made and implemented.
|
|
What is the best choice in terms of excel for company stock
: The company has offered you a $5,000 bonus, Which has a current stock price of $50 per share. Mathematically, what is the best choice? In terms of Excel. Why?
|