Question: Help please do all Paradigm Metals, Inc. is evaluating a new 3 - D printer to support a new production program. The 3 - D
Help please do all
Paradigm Metals, Inc. is evaluating a new D printer to support a new production program. The
D printer costs $ and requires another $ in setup and calibration. The firm will
finance of the cost basis with equal payments made on the loan at over years. The
printer has an expected service life of years but falls into the MACRS year class for depreciation
purposes. After years the salvage value is estimated at $ With the printer online
annual revenues are estimated at $ Annual expenses are estimated at $ in labor,
$ in material, and $ in overhead. The CFO has authorized $ in working capital
which is to be recovered at the end of the th year. The CFO has set the MARR at after tax
and the tax rate for the firm is set at Find the following:
a Draw the before tax cash flow
b Find the book value at the end of year the capital gain or loss from the sale of the asset,
and the associated taxes from gain or tax advantage from loss for the cash flow in year
A partial set of the depreciations have been
calculated in the table shown.
c Taxes have been calculated and are identified below for years and Calculate the
taxes for years and a partial loan amortization is provided to assist with yearly interest
deductions Use the
depreciations from part b
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