What is the npv of the investment

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-Company XYZ invests $44,338 today with the hopes to return $48,308 in one year. If the cost of capital is 8%, what is the NPV of the investment?

-Company XYZ is considering an investment to expand the business. If Company XYZ undertakes the investment, this investment will pay $5,000 at the end of the first year and at the end of the third year. The opportunity requires an initial investment of $1,300 plus an additional investment at the end of the second year of $4,500 . What is the NPV of this opportunity if the cost of capital is 10% per year? (Please provide the numeric answer to 2 decimal places.

-A seller of frozen foods, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be $14,000 per year. While many of these sales will be to new customers, the company estimates that 30% will come from customers who switch to the new, healthier pizza instead of buying the original version. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new pizza? (Please provide the numeric answer to the 2 decimal places.)

-Corporation ABC is purchasing a $13 million machine. It will cost $12,000 to transport and install the machine. The machine has a depreciable life of seven years and will have no salvage value. Assume that CCA deductions are the same as depreciation expenses. If the marginal tax rate is 35% and Corporation ABC uses straight-line depreciation, what are the depreciation expenses associated with this machine?

Reference no: EM132709978

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