Question: 1 pts Question 31 You are considering two machines, A and B that can be used for the same purpose, Machine A costs $250,000, will

 1 pts Question 31 You are considering two machines, A and
B that can be used for the same purpose, Machine A costs
$250,000, will reduce costs by $70,000 per year, needs net working capital

1 pts Question 31 You are considering two machines, A and B that can be used for the same purpose, Machine A costs $250,000, will reduce costs by $70,000 per year, needs net working capital of $20,000 at time zero which be released at the end of the project has a 5 year straight line depreciable life and can be sold at the end of the project's life for $50,000. Machine B costs $320,000, will reduce costs by the same $70,000 per year, has net working capital of $40,000 at time zero (also released at the end of its life), has a ten year straight line depreciable life and can be sold at the end of its life for $60,000, Assume that the tax rate is 21% and the discount rate is 10%. What are the after tax salvage values for project A and B at the end of their lives? Don't include the annual operating cash flows in this calculation, just the salvage value plus or minus any tax benefit or liability, $23,000 for A and $43, 100 for B $39.500 for A and $47.400 for B o $31,000 for A and $37,200 for B O $40,000 for A and $50,000 for B $50,000 for A and $60,000 for B Show D Question 32 You are considering two machines, A and B that can be used for the same purpose. Machine A costs $250,000, will reduce costs by $70,000 per year, needs net working capital of $20,000 at time zero which be released at the end of the project has a 5 year straight line depreciable life and can be sold at the end of the project's life for $50,000, Machine B costs $320,000, will reduce costs by the same $70.000 per year, has net working capital of $40,000 at time zero (also released at the end of its life), has a ten year straight line depreciable life and can be sold at the end of its life for $60,000. Assume that the tax rate is 21% and the discount rate is 10%. What are the net present values for these two projects? $16.378.59 for A and $54,782.54 for B 0 $1,787.92 for A and $11.156.09 for B 53.70449 for A and $24 333.2 for B 512.486 55 for A and 541,42113 for B

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