Question: Develop a spreadsheet to determine the next present value or present worth of the following project: Investment: 150,000 Revenue/Savings: 28,000 Incremental Expense/Cost: 4,000 Salvage Value:

Develop a spreadsheet to determine the next present value or present worth of the following project:

Investment: 150,000

Revenue/Savings: 28,000

Incremental Expense/Cost: 4,000

Salvage Value: 25,000

Project Life: 12 years

MACRS Schedule: 7 years

Tax Rate: 25%

MARR: 15%

Inflation: 3%

Is this a good investment to make? What is the internal rate of return, and the project's payback period?

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!

Q:

2. [60] Develop a spreadsheet to determine the net present value or present worth of the following project Bonus Depreciation: 0% Investment: 140,000 Revenue/Savings: 25,000 Incremental Expense/Cost:...

Q:

Develop a spreadsheet to determine the net present value or present worth of the following project: Bonus Depreciation: 0% Investment: 140,000 Revenue/Savings: 25,000 Incremental Expense/Cost: 5,000...

Q:

Please help, I will rate. Thank you! Planning for Capital Investments Effects of straight-line versus accelerated depreciation on an investment decision LO 10-2, 10-4 Problem 10-22A eXcel Harper...

Q:

Sweet Homes Co is a small manufacturing company. As a Finance Manager of the company, you have been tasked to evaluate the two investment options which are not mutually exclusive. Option A Sweet...

Q:

The directors of Silberman Ltd are considering a proposal for a new machine that is estimated to cost 2,500,000. This would enable the company to manufacture a superior, additional new product,...

Q:

COS 14.20 Advanced: Investment appraisal, expected values and sensitivity analysis. Umunat plc is considering investing 50 000 in a new machine with an expected life of five years. The machine will...

Q:

1. BRAVO Company is considering an investment in a machine that would reduce annual labor costs by P30, 000. The machine has an expected life to 10 years with no salvage value. The machine would be...

Q:

Hi, please provide detailed solution for these two questions. Thank you. RSM 333 Spring 2017 Assignment #2 Due Monday, February 6th @ 4pm in Commerce Office Problem #1: (20 marks) Project Analysis /...

Q:

Can I ask for you assistance again in reference to the company Vonage? ANALYSIS OF CAPITAL BUDGETING PROJECT LENGTH OF PROJECT 1. What is the length, in years, of this project 5.00 Years DISCOUNT...

Q:

CASE STUDY REPORT FORMAT GUIDELINE Case Study-1 Following is a suggested guideline for preparing your case study reports. Cover Page (Include student names and student Ids) Executive Summary (If...

Q:

How would you answer Wetlaufers question whether, if Joe Ryan is successful at his job, it makes any difference that he cheats on his wife? Does it alter your opinion of Wetlaufers article to learn...

Q:

Headaches are one of the most common, but least understood, ailments. Most people get headaches several times per month; over-the-counter medication is usually sufficient to eliminate their pain....

Q:

According to traditional finance theorists, what assumption is made about investors in an efficient market? Investors are perfectly rational and self - controlled. ( $ ) Investors ignore all...

Q:

mark comes to work everyday and his team has to push him to meet deadlines and turn in his projects on time. is mark low on motivation or high on mot

Q:

A good negotiation tactic is to not make unilateral concessions during negotiations. Instead, experts advise that you should figure out the other sides hidden agenda, devise an alternative if you...

Q:

Why has Negotiating Women, Inc. focused its attention on women?

Q:

What are the underlying ethical issues surrounding womens networking and mentorship?