ChemX, Inc. is a manufacturer of chemical products with locations in the United States. Its manufacturing plant in Harrisburg, PA is considering the purchase of a new mixing machine. The cost of goods sold will be $6,850,000 in year 1, and will increase by $200,000 each year. The cost of the machine is $2,600,000 and it is expected to result in cost savings of 10.0% of that location's cost of goods sold over the life of the mixing machine which is 8 years. Over the 8 years an annual investment in working capital will be required of $2,000 (needs to be input at the beginning of year). At the end of its life it can be sold for 3% of the original cost. Five year MACRS depreciation will be used for tax purposes, which has the depreciation rate of 20%, 32%, 19%, 12%, 12% and 5% for the first five years. The company's marginal tax rate is 25%. Required:
You are to prepare the net present value and internal rate of return, payback period, discounted payback period, profitability index of the project and recommend whether to ACCEPT or REJECT the project and WHY?

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.