Question: c)what is the additional year 3 cash flow d) id the project cost of capital is 15% what is the NPV of the project Check

c)what is the additional year 3 cash flow
d) id the project cost of capital is 15% what is the NPV of the project  c)what is the additional year 3 cash flow d) id the

Check Sty Work eBook Problem Walk Through New Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,110,000, and it would cost another $23.500 totalt. The machine falls into the MACRS 3 year dass, and it would be sold after 3 years for $585,000. The MACRS rates for the first three years are 0.3333, 0.445, and 0.1481. The machine would require an increase in net working capital (inventory) of $15,500. The sprayer would not change revenues, but it is expected to save the firm $382,000 per year in before tax operating costs, manylabor Campbell's marginal tax rate is 25% (Ignore the half-year convention for the straight line method.) Cash outflows, any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar What they

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!