Calculate the npv of investment

Reference no: EM131016605

Whoopie Cushions, Inc. is analyzing the proposed purchase of a new machine for $550,000. The proposed machine has an estimated economic life of six years but will be treated as five-year MACRS property for depreciation purposes. The machine will increase the firm's capacity, and it is expected to contribute $176,000 annually to earnings before depreciation, interest and taxes. The firm is in a 30% tax bracket and estimates its cost of capital to be 16%. Calculate the NPV of this investment using an Excel spreadsheet. Show and label your work. Formulas for NPV and IRR are preprogrammed in Excel.

Reference no: EM131016605

Questions Cloud

What are your impressions of generation x? : Do you feel that you belong to a brand community or consumer tribe? Describe your associations with this group.

What was the effect of the error in ending inventory on 2012 : Capwell Corporation uses a periodic inventory system. The company's ending inventory on December 31, 2013, its fiscal-year end, based on a physical count, was determined to be $343,000. Determine the correct amounts for 2013 ending inventory, purchas..

Does the company employ the use of modern technology : Why does the company use other shipping company even though it can do so on its own? Does the company employ the use of modern technology in its operations

Describe the strategies suggested by psychologist : List and describe in detail, general guidelines for designing web pages.

Calculate the npv of investment : Calculate the NPV of this investment using an Excel spreadsheet. Show and label your work. Formulas for NPV and IRR are preprogrammed in Excel.

How can sender and receiver establish new shared secret key : Suppose that the sender and re ceiver have never met, but there exists a trusted third party that shares a secret key with the sender and also shares a (different) secret key with the receiver. How can the sender and receiver establish a new shar..

Do the collateral sources have any psychological issues : What do other people have to say about the patients behavior - Are there any commonalities between the collateral sources' reports?

Briefly describe the brownian motion in regard : Briefly describe the Brownian motion in regard to matter and its particle

Write a report -background on an it security evaluation : Write a report containing the following sections:- Introduction - purpose of the proposal, Background on an IT Security Evaluation - what it is? Proposed work effort

User Account

All Pages