annual savings

Project Description:

annual savings from project x include a reduction of ten clerical employees with annual salaries of $15,000 each, $8,000 from reduced production delays, $12,000 from lost sales due to inventory stock-outs, and $3,000 in reduced utility costs. project x costs $250,000 and will be depreciated over a five-year period using straight-line depreciation. incremental expenses of the system include two new operators with annual salaries of $40,000 each and operating expenses of $12,000 per year. the firms’ tax rate is 34 percent.
a. find project x’s initial cash outlay.
b. find the project’s operating cash flows over the five-year period.
c. if the project’s required return is 12 percent, should it be implemented?
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Project Stats:

Price Type: Negotiable

Total Proposals: 1
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