Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Project Management Expert

Guo Chemical Corporation is thinking the purchase of the chemical analysis machine. Purchase of this machine will result in the increase in earnings before interest and taxes of $70,000 per year. Machine has purchase price of $250,000, and it would cost the extra $10,000 after tax to install this machine properly. Additionally, to operate this machine properly, inventory should be increased by $15,000. This machine has expected life of 10 years, after which it will have no salvage value. Also, suppose simplified straight-line depreciation and that this machine is being depreciated down to zero, a 34% marginal tax rate, and required rate of return of 15 percent.

a. Determine initial outlay related with this project?

b. prepare down the annual after-tax cash flows related with this project, for years 1 through 9?

c. Determine the terminal cash flow in year 10 (Determine the annual after-tax cash flow in year 10 plus any extra cash flow related with termination of project)?

d. Should this machine be bought?

 

Project Management, Management Studies

  • Category:- Project Management
  • Reference No.:- M933674

Have any Question? 


Related Questions in Project Management

Jordans furniture shoppertaining its target marketsamuel

Jordan's Furniture: Shoppertaining Its Target Market Samuel Tatelman began selling furniture out of the back of his truck in Waltham, Massachusetts, in 1918. Today, his grandsons, Eliot and Barry, sell more furniture per ...

1 a company often test markets a proposed product in a

1. A company often test markets a proposed product in a specific area or location. Suppose that you wish to test market your new revolutionary Super Wax car wax, which requires only one application for a lifetime finish. ...

In your judgment is intel a monopolydid intel use

In your judgment is Intel a "monopoly"? Did Intel use monopoly-like power; in other words, did Intel achieve its objectives by relying on power that it had due to its control of a large portion of the market?

1 how do industry profits change as a product moves through

1. How do industry profits change as a product moves through the four stages of its life cycle? 2. What are the stages in the product adoption process, and how do they affect the commercialization phase? 3. How does bran ...

When youre big you can be your own b2b e-market place

WHEN YOU'RE BIG , YOU CAN BE YOUR OWN B2B E-MARKET PLACE Business to Business (B2B) e-marketplaces are the growing trend in the B2B e-commerce business model. Businesses from all industries and countries can gather, perf ...

1 how is a peer-to-peer network different from a

1. How is a peer-to-peer network different from a client/server network? 2. What is an Ethernet card? 3. What does a network switch do? 4. What is bandwidth?

Selling the idea of implant chips at your schoollets assume

SELLING THE IDEA OF IMPLANT CHIPS AT YOUR SCHOOL Let's assume for a moment that your team is in favor of using implant chips that contain vitally important information such as identification and medical information. Your ...

What are the characteristics of management based on the

What are the characteristics of management based on the method described in the text as the "popular approach" to management? Define each characteristic? What are the three types of general planning? Define each ? List a ...

1 how important are services in the us economy2 identify

1. How important are services in the U.S. economy? 2. Identify and discuss the major service characteristics. 3. For each marketing-mix element, which service characteristics are most likely to have an impact? 4. What ty ...

Given is the recommendation cisco system1read the

Given is the recommendation cisco System. 1. Read the recommendations for Cisco Systems Inc. The document is uploaded, names "Cisco Systems -Recommendations". The recommendation/analysis was done by your peers. Your assi ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen