Question: A new project involves the purchase of a $9000 food processing machine. The machine would be depreciated on a straight-line basis over its 3 -year
A new project involves the purchase of a $9000 food processing machine. The machine would be depreciated on a straight-line basis over its 3 -year useful life to a book value of $661. At the end of the life of the project (at the year 3 point), the machine will be sold for an estimated $1,051. The project will cause an increase in Sales of $5,665 in each of years 1 through 3 . It is also expected to enhance efficiencies and reduce operating expenses by $1,371 in each of years 1 through 3 . The project will require an increase in Accounts Receivable of $594 and an increase in Accounts Payable of $1,446 up front. The project's impact on these accounts is expected to disappear at project end (in year 3 ). The firm's marginal tax rate is 40%, and its WACC is 12%. The NPV of this project is $ Round your final answer to 2 decimal places (example: if your answer is 12.3456 , you should enter 12.35). Margin of error for correct responses: +/0.1 NOTE: You should not round any intermediate work -- only round when you reach your final answer. If your final answer is negative, enter a negative sign preceding your figure
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