Finance question has me stumped HELP FAST PLEASE?
This is the question:
Kurt's Auto Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $480,000 is estimated to result in $205,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $55,000. The press also requires an initial investment in spare parts inventory of $21,000, along with an additional $3,000 in inventory for each succeeding year of the project. If the shop's tax rate is 34% and its discount rate is 15%, should Kurt's buy and install the machine press?
1)Show the Proforma Income Statement for life of the project
2) Calculate the OCF
3) calculate the appropriate depreciation for the life of the project,
4) create the Cash Flow From Assets Schedule for the life of the project and calculate the NPV
Auto Salvage Ga
Filed under auto salvage ga by .
Leave a Comment
Comments on Finance question has me stumped HELP FAST PLEASE?
9:16 pm
Auto Salvage Ga
sounds like you are trying to get your homework done for you………..
10:45 pm
Auto Salvage Ga
You should post homework help questions in the Education Reference category under the Homework Help sub-category.
But ultimately, you should do your own homework. How else will you learn?
11:10 pm
Auto Salvage Ga
You've posted in the wrong category. Try homework help, but if no one is willing to do your work for you, act responsibly and do it yourself.