What is the net present worth of the project

Reference no: EM13184070

A special-purpose machine tool set would cost $30,000. The entire capital expenditure ($30,000) is to be borrowed with the stipulation that it be repaid by two equal end of year payments at 15% compounded annually. The tool is expected to provide annual savings (in material) of $45,000 for two years and is to be depreciated by the MACRS three-year recovery period. This special machine tool will require annual O&M costs in the amount of $12,000. The salvage value at the end of two years is expected to be $9,000. Assuming a marginal tax rate of 40% and MARR of 15%, what is the net present worth of this project?

Reference no: EM13184070

Questions Cloud

State what is the persent phosphorus in the dry detergent : The water is analyzed and found to be 735 ppm in phosphate ion. What is the % phosphate ion in the dry detergent? What is the % phosphorus in the dry detergent? How many grams of phosphate are in the 300. g sample?

What type of fiscal policy would you recommend : The economy of the country of Upland is still recovering from a severe recession and still has an unemployment rate close to 9%. Assume that the government's only concern is to achieve full employment. 1. What type of fiscal policy would you rec..

State the coordination number of each ion : The ionic radii of Cs+=.174nm, radius of Cl-=.181nm, and the coordination numberof each ion=8, Calculate the lattice parameter

Idea of lebensraum : The idea of Lebensraum maintained that- a nation's power depended on the amount and kind of land it occupied. only large populations could maintain a powerful country.

What is the net present worth of the project : A special-purpose machine tool set would cost $30,000. The entire capital expenditure ($30,000) is to be borrowed with the stipulation that it be repaid by two equal end of year payments at 15% compounded annually. The tool is expected to provide ..

State what is the probability of finding a particle of mass : What is the probability of finding a particle of mass m in (a) the left-hand and one-third, (b) the central one-third, and (c) the right-hand one-third

The nave of hagia sophia was exclusively reserved for clegy : The nave of the hagia sophia was exclusively reserved for the clergy. the laity or congregation was confined to teh aisles and galleries. based on this information, what acounts for teh symbolical unity of church and state?

Compute the vapor pressure of a solution : Calculate the vapor pressure of a solution containing 28.5g of glycerin (C3H8O3) in 125mL of water at 30.0 ?C. The vapor pressure of pure water at this temperature is 31.8 torr.

What is the domestic price of chick peas : where P is the price in cents per kilo and Q is the quantity in millions of kilos. Canada is a small producer in the world chick pea market, where the current world price (which will not be affected by anything we do) is 60 cents per kilo. The Gov..

User Account

All Pages