Question: 6. Problem 12.08 (New Project Analysis) You must evaluate the purchase of a proposed spectrometer for the RBD department. The purchase price of the spectrometer

 6. Problem 12.08 (New Project Analysis) You must evaluate the purchase

6. Problem 12.08 (New Project Analysis) You must evaluate the purchase of a proposed spectrometer for the RBD department. The purchase price of the spectrometer including modifications is $100,000, and the equipment win be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $40,000, The equipment would require an $11,000 increase in nec operating working copital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $56,000 per year in before-tax laber costs. The firm's marginal federal-plus-state tax rate is 25%. a. What is the initial investment outlay for the spectrometer after bonus depreciation is considered, that is, what is the Year 0 project cash flow? Enter your answer as a Dositive value. Round your answer to the nearest dollar. 5 t. What are the orolect's annual cash fows in Years 1, 2, and 3 ? Do not round intermediate calculations, Round your answers to the nearest delar. Year 1:5 Year 2:5 Year 3:5 C. If tha warce is 10%, should the spectrometer be purchased

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