Jason anticipates investing about($75,000) in a high-end 3-D laser cutter that he estimates will generate ($20,000) annually

Question:

Jason anticipates investing about$$75,000$ in a high-end 3-D laser cutter that he estimates will generate $$20,000$ annually for the next decade.

Expenses are reasonable and projected to be about $$6,500$ per year.

Assuming straight-line depreciation, no salvage value, and combined taxes of 40%, what is the rate of return for this project?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Decision Making For Engineers

ISBN: 9780300192186

1st Edition

Authors: Colin K. Drummond

See More Books

Question Posted: Apr 21, 2024 05:00 AM

See More Questions

Jason moves ahead with the investment in Problem 5.14, but the business turns out to be much better than expected and a competitor wants to buy Jason's system for $$50,000$ two years after he...
Jason discovers that he can take an investment tax credit in the current fiscal year on any capital equipment purchased for his expansion plans in Problem 5.15. The state credit is 33% for...
NU Industries operates two manufacturing plants that produce three products: Widgets, Gadgets, and Flugels. The finished products are shipped to the Distribution Center for final distribution to the...
Explain in detail the role of data analytics in healthcare.
Finch Construction Company provides the carpenters it employs with all of the required tools. However, the company believes that this practice has led to some employees not taking care of the tools...
A state whose fiscal year ends June 3 0 , 2 0 2 2 , had the following transactions and events. For each item, compute how much total expenditures the state will report in the General Fund Statement...
The currents in a $\Delta$ load are $I_{a b}=10 \angle 0^{\circ}, I_{b c}=15 \angle-90^{\circ}$, and $I_{c a}=20 / 90^{\circ}$ A. Calculate (a) the sequence components of the $\Delta$-load...
The board of directors of Media Plus authorizes the issue of $6,000,000 of 5%, 15-year bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued on May 31, 2014,...
What are the security requirements and the relevant WHS processes and procedures that should be considered in a server installation project?
Given the interest of the competitor in his laser cutter activity, Jason is considering not selling but quadrupling the production facility size and investing in 3 more systems at a cost of...
Darshan Engineering, LLC has decided they need to conduct an after-tax analysis for problem 5.13 and so the estimated annual receipts and expenses are shown below. The company MARR is 12%. Which...
When computing a cube of high dimensionality, we encounter the inherent curse of dimensionality problem: There exists a huge number of subsets of combinations of dimensions. a. Suppose that there are...
Why might a firm lower price during peak demand? Provide an example.
How do performance management practices vary across different organizational contexts and industries, and what lessons can be learned from best practices and case studies in performance management...
VEE Ltd is a prominent manufacturer of eco-friendly personal mobility devices, which include the "Green-Cruiser" Scooters (GCS). The company operates with a decentralised structure comprising three...
Specifically, you must address the following rubric criteria: Describe the focus of IT auditing and business auditing. Include the following in your response: Examples of risks that IT auditors...
How can performance management systems be adapted to accommodate remote work arrangements and distributed teams, leveraging technology and virtual collaboration tools to ensure accountability,...
Most plagioclase contains both Na and Ca. How is the apparent charge imbalance accommodated? (Hint: The solution involves more ionic substitutions.)
Smiths Family Fashions implemented a balanced scorecard performance measurement system several years ago. Smiths is a locally owned clothing retailer with fashions for men, women, teens, and...
George has a credit card that he sometimes carries a balance while on other times he does not carry a balance. As a combination user of credit, what factor(s) should be of most importance to George...
Gaining approval to disburse payroll amounts. Double-underlining the totals. Ensuring that the sum of the column totals equals the sum of the row totals. Computing the column and row totals. What...
What is the expected gain from the acquisition? What is the net present value (NPV) of the acquisition to DM shareholders if it costs an average $30 per share to acquire all of the outstanding...

Jason anticipates investing about($75,000) in a high-end 3-D laser cutter that he estimates will generate ($20,000) annually

Question:

Step by Step Answer:

SOLUTION Okay lets analyze this project using the rate of return meth...View the full answer

Financial Decision Making For Engineers

Students also viewed these Engineering questions