Question: Excel spreadsheet is required. Thanks for helping me out! FX, Inc. is a volume manufacturer of high technology automotive mirrors (including cell link and voice

Excel spreadsheet is required. Thanks for helping me out! FX, Inc. isExcel spreadsheet is required. Thanks for helping me out!

FX, Inc. is a volume manufacturer of high technology automotive mirrors (including cell link and voice activation). FX is looking to expand its operations to add a second product. The equipment investment cost for this new operation is $125,000. The project falls under a 7-year MACRS class life and the company estimates that the salvage value will be $50,000 at the end of the 5-year project. The annual revenue for the new line is $100,000. The annual manufacturing costs are listed below: Labor: $20,000 Materials: $12,000 Maintenance: $8,000 Excel Questions: 1. If the investment can be expensed in the first year, how would this change the NPV? 2. The income tax rate is 40% and the MARR is 15%. Find the interest rate when the company will give up the option to borrow fund. FX, Inc. is a volume manufacturer of high technology automotive mirrors (including cell link and voice activation). FX is looking to expand its operations to add a second product. The equipment investment cost for this new operation is $125,000. The project falls under a 7-year MACRS class life and the company estimates that the salvage value will be $50,000 at the end of the 5-year project. The annual revenue for the new line is $100,000. The annual manufacturing costs are listed below: Labor: $20,000 Materials: $12,000 Maintenance: $8,000 Excel Questions: 1. If the investment can be expensed in the first year, how would this change the NPV? 2. The income tax rate is 40% and the MARR is 15%. Find the interest rate when the company will give up the option to borrow fund

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