What is the net present value of the machine

Assignment Help Business Management
Reference no: EM132812020

A firm is considering purchasing a machine that costs $120,000 and will be depreciated straight-line over 6 years to a value of zero. The machine will save $30,000 in costs each year. The firm's marginal tax rate is 35 percent and the discount rate is 10 percent. What is the net present value of the machine?

Reference no: EM132812020

Questions Cloud

Estimating the project payback : Cash inflows during the next 6 years will be $35,000 per year. Given this information, provide the project's payback.
What is the npv for a machine : (a) What is the NPV for a machine that can be purchased for $20,000, has an annual maintenance cost of $4,000, and will last for five years?
Discussion on Information Technology for Managers : Question - Discussion on Information Technology for Managers
Analysis and interpretation of results : Can you explain the information below market value added (MVA) analysis and interpretation of results below.
What is the net present value of the machine : The firm's marginal tax rate is 35 percent and the discount rate is 10 percent. What is the net present value of the machine?
What is the npv for a machine : What is the NPV for a machine that can be purchased for $20,000, has an annual maintenance cost of $4,000, and will last for five years?
Write a research paper on concepts related to risk modeling : Enterprise Risk Management Question - Write a research paper on concepts related to risk modeling
Compute the bonds issue price : 1.Sunshine Company issues $1,000,000 of 8% bonds that pay interest semiannually and mature in 10 years. Compute the bonds' issue price assuming that the bonds'
Calculate total dollar return : Assume that you would like to buy 100 shares of a stock that is currently priced at $ 70. The initial margin is 65% and maintenance margin is 35%.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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