Customer Service Chat
Get quote & make Payment
Corporate finance, finance, Other Engineering
Firm A needs to purchase a new machine. If the machine is purchased, it will replace
an old machine purchased 10 years ago for €105,000 and which is being depreciated
on a straight line basis to a zero salvage value (15-year depreciable life). The old
machine can be sold for €60,000. The new machine will cost €200,000 installed and
will be depreciated using the following rate of 20, 32, 19, 12, and 11%; it will be sold
for €16,000 at the end of 5th year. The firm expects to be able to reduce net
working capital by €5,000 when the machine is installed, but required working capital
will return to the original level when the machine is sold after 5 years. Also, the firm
expects to increase its revenue by €20,000 per year if the new machine is
purchased, but cash expenses will also increase by €4,500 per year. If the firm’s cost
of capital is 10 percent and its tax rate is 20 percent what is the NPV of the project?
Posted Date: 2/14/2012 6:05:35 PM | Location : United States
Ask an Expert
Corporate finance, finance, Assignment Help, Ask Question on Corporate finance, finance, Get Answer, Expert's Help, Corporate finance, finance Discussions
Write discussion on Corporate finance, finance
Your posts are moderated
Write your message here..
Principles of jet propulsion, Principles of Jet Propulsion: Newton 's...
Principles of Jet Propulsion: Newton 's Laws of Motion. To understand the basic principles of jet propulsion it is necessary to understand the practical application of Sir I
Means of escape from trains - railway inspections, Means of escape from tra...
Means of escape from trains - railway inspections: The means of escape from trains is also considered in NFPA130. Some of the considerations are: At least two eme
Harriman, HARRIMAN MANUFACTURING COMPANY Harriman Manufacturing Company i...
HARRIMAN MANUFACTURING COMPANY Harriman Manufacturing Company is evaluating the purchase of a new piece of equipment. The quoted price is $50,000, and it would cost Harriman anot
Lock Clip Came out from Rear Brake Drum (Backplate) , A type of brake used ...
A type of brake used to keep the vehicle from rolling when it is parked. The standard Parking brake locks the rear wheels to keep the car from moving. Parking brake cable is fixed
Genetics, what is genetic engineering
what is genetic engineering
Liquidity ratios, Liquidity Ratios: The liquidity ratios of the company hel...
Liquidity Ratios: The liquidity ratios of the company help in determining the ability of the company to convert its current or liquid assets readily into cash. Higher the ratios be
Electron beam welding, The experimental set-up of Electron-beam welding. ...
The experimental set-up of Electron-beam welding. In the electron-beam process, electrons are emitted from the heated filament called the cathode and then focused into a beam wh
Audio amplifier classes, Expertsmind.com brings you unique solution in el...
Expertsmind.com brings you unique solution in electrical engineering Audio Amplifier Classes Class A The transistor amp conducts for the entire cycle of input signal.
Engineering Economy, I need the answers of these three problems. 1. How muc...
I need the answers of these three problems. 1. How much money would be in a savings count that started with a deposit of $2,000 in year 1 with each succeeding amount increasing by
Unconventional gas, hey i need help in unconventional gas assignment, pleas...
hey i need help in unconventional gas assignment, please let me know if u can do this so
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.