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Your construction company is evaluating the proposed acquisition of a new earthmover. A consulting company you hired developed the following analysis last year at a cost to you of $6,000. The earthmover's basic price is $50,000 and will need to be modified for your purposes for another $10,000. The earthmover falls into the 3 year MACRS class and will be sold at the end of 3 years for $25,000. Use of the earthmover will require an immediate increase of $2,000 in spare parts inventory (working capital), which is expected to be fully recovered when the earthmover is sold. The earthmover is expected to save $20,000 in labor costs each year. Your company's marginal tax rate is 34% and your cost of capital is 10%. You must now make a decision. What is this purchase's NPV?
What are some of the factors that common stockholders consider when deciding how much, if any, cash dividends they desire from the corporation in which they have invested? Gene
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I need your assistance on how to group the relevant data so as to help me in the data analysis
Ask queswtion #Minimum 100 words accepted# what are the characteristics of debt finance? What are the similarities and differences between debt finance and ordinary share capital
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FINANCIAL MANAGEMENT
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what is the relationship between industry pe and comapny''s pe?
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