subject
Business, 24.04.2020 19:04 Cherrykisses101

Eggz, Inc., is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The equipment will cost $515,000 and will be eligible for 100 percent bonus depreciation. The equipment can be sold for $99,000 at the end of the project in 5 years. Sales would be $387,000 per year, with annual fixed costs of $65,000 and variable costs equal to 40 percent of sales. The project would require an investment of $61,000 in NWC that would be returned at the end of the project. The tax rate is 23 percent and the required return is 13 percent.
Calculate the NPV of this project>

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 17:40
Which of the following best explains cost-push inflation? a. increasing wages for workers drive up the cost of production, forcing producers to charge more to meet their costs. b. consumers demand goods faster than they can be supplied, increasing competition among buyers. c. rising prices for goods and services reduce spending power and cut into consumer demand. d. wages drop so that workers have to spend a higher percentage of income on the cost of necessities.2b2t
Answers: 1
question
Business, 22.06.2019 05:30
Identify the three components of a family's culture and provide one example from your own experience
Answers: 2
question
Business, 22.06.2019 09:40
Henry crouch's law office has traditionally ordered ink refills 55 units at a time. the firm estimates that carrying cost is 35% of the $11 unit cost and that annual demand is about 240 units per year. the assumptions of the basic eoq model are thought to apply. for what value of ordering cost would its action be optimal? a) for what value of ordering cost would its action be optimal?
Answers: 2
question
Business, 22.06.2019 20:30
You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase
Answers: 3
You know the right answer?
Eggz, Inc., is considering the purchase of new equipment that will allow the company to collect loos...
Questions
question
Mathematics, 21.04.2020 20:45
question
Mathematics, 21.04.2020 20:45
Questions on the website: 13722361