Continuing with Mickey's Supply, they are looking at upgrading technology to allow for faster service of customers. The price of the machine being considered is $210,000. Installation costs are 30,000. They expect the increased sales (net of expenses except for depreciation) or EBITDA to be 90,000 for year 1, 130,000 year 2, and 60,000 year 3. The machine can be sold for $40,000 at the end of the project. Tax 30%. MACRS 3 YR . What is the terminal value?

Continuing with Mickey's Supply, they are looking at upgrading technology to allow for faster service of customers. The price of the machine being considered is $210,000. Installation costs are $30,000. They expect the increased sales (net of expenses except for depreciation) or EBITDA to be 90,000 for year 1, 130,000 year 2, and 60,000 year 3. The machine can be sold for $40,000 at the end of the project. Tax 30%. MACRS 3 YR . Use the answers obtained in the previous questions. Use WACC 10.8%.

What is the NPV (net present value)?

Continuing with Mickey's Supply, they are looking at upgrading technology to allow for faster service of customers. Use the answers obtained in the previous questions. Use WACC 10.8%.

What is the IRR (internal rate of return)?