Solution-Percent and the discount rate

Percent and the discount rate

Reference no: EM131388005

Project Evaluation [LO1] Dog Up! Franks is looking at a new sausage system with an installed cost of $540,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $80,000. The sausage system will save the firm $170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?

Reference no: EM131388005

Questions Cloud

Provide decision in given condition : Two years later, Clark orders, and receives, 1,600 tons of sand from American Sand & Gravel. Clark refuses to pay more than $9.45 per ton. American Sand & Gravel sues for the remaining $0.55 per ton. Decision?

Who will prevail in given condition and why : Auburn refused to deliver the molds unless CBS paid the additional charge for engineering services. CBS claimed that the contract did not provide for a withdrawal charge. Who will prevail? Why?

Discuss the potential tax consequences : Discuss the potential tax consequences that could result by deferring the sale of stock into a different tax year. Be specific with your recommendations.

Create presentation detailing history of learning disability : Prepare a PowerPoint presentation detailing the history of learning disabilities. Provide substantial definitions and discuss discrepancies that may cause misidentification of students.

Percent and the discount rate : The sausage system will save the firm $170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV ..

Drawing on your readings in behavioral economics : What is imperfect optimization and why might it be costlier, in relative terms, for the poor than for the rich? Please suggest a public policy solution that may address this issue, drawing on your readings in behavioral economics.

Discuss about the learner challenge : NURS6351:I currently teach a first quarter fundamentals nursing course. This is the introductory course to nursing basics. The student population can be very diverse. Many students have not been in school for many years and are not sure how to stu..

Calculating costs and break-even : Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $9.64 per unit, and the variable labor cost is $8.63 per unit.

Write decision in given condition : Terminal Grain Corporation brought an action against Glen Freeman, a farmer, to recover damages for breach of an oral contract to deliver grain.

User Account

All Pages

Percent and the discount rate

Reference no: EM131388005

Reference no: EM131388005

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT