corporate finance

Project Description:

scott investors, inc., is considering the purchase of a $360,000 computer with an economic life of five years. the computer will be fully depreciated over five years using the straight-line method. the market value of the computer will be $60,000 in five years. the computer will replace five office employees whose combined annual salaries are $105,000. the machine will also immediately lower the firm’s required net working capital by $80,000. this amount of net working capital will need to be replaced once the machine is sold. the corporate tax rate is 34 percent. the appropriate discount rate is 12 percent.

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Project Stats:

Price Type: Fixed

Project Budget: $0 to $10
Total Proposals: 3
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