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Bill wants to purchase a machine to help improve the quality of the product his company manufactures. The information needed to answer this question is provided below: INFORMATION NEW MACHINE: Purchase Price $200,000.00 Estimated Life 4 YEARS Use Straight Line Depreciation Method Estimated Salvage Value $20,000.00 Estimated Net Operating Cash Flow Increase/Decrease (Prior to Depreciation and Taxes) End of Year 1 $60,000.00 End of Year 2 $80,000.00 End of Year 3 $80,000.00 End of Year 4 $90,000.00 ASSUMPTIONS: Working Capital Addition $40,000 Tax Rate 40% WACC Rate 10% Based on this information calculate the NPV if Bill decides to purchase the new machine. Round your answer to the nearest whole number and do not include dollar signs or commas. (20123.34 would be entered as 20123) If the amount is negative, include a "-" sign (-20123) You can use the Simple Capital Purchasd Excel spreadsheet as an example. You will need to modify the spreadsheet since this question is based on a 4 year life asset, not a 5 year life. 2.Based on the correct calculation, Bill A) should not buy this machine since the NPV is negative and the company would not be getting a sufficient return. B) should buy this machine since the NPV is positive and the company would getting a sufficient return above the required amount.
Sarah and Emily form Red Corporation with the following investments: Sarah transfers computers worth $200,000 (basis of $80,000), while Emily transfers real estate worth $180,000 (basis of $40,000) and services (worth $20,000) rendered in organizi..
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davidian enterprises had the following data pertaining to its health care beneift plan for the current calendar year
Joan purchases a government bond for $10,000 that pays 7 percent annual interest. Jim purchases $20,000 worth of corporate bonds that pay 10 percent annual interest. Joan's goal is to earn $700 per year on her investment, and Jim's goal is to earn..
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On December 31, 2019, Bassinger pays a demolition firm to dismantle the depot and remove the tanks at a price of $80,000. Prepare the journal entry for the settlement of the asset retirement obligation.
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flagstaff co. has actual sales for july and august and forecast sales for september october november and december as
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What are several possible explanations for the markdown and slow sale of common waleth Edison's bonds?
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