Question: Help with question 9 ASAP Question 9 1 pts CoolTech Inc. is considering a new refrigerated warehouse which will cost $8,000,000 and is expected to

Help with question 9 ASAP Help with question 9 ASAP Question 9 1 pts CoolTech Inc. is

Question 9 1 pts CoolTech Inc. is considering a new refrigerated warehouse which will cost $8,000,000 and is expected to have revenues of $800,000 at the end of each of the next 5 years and expenses of $300,000 for years 1-3 and $350,000 for years 4-5. The warehouse is depreciated for 40 years on a straight line basis and expects to have a salvage value of $1,000,000. At the end of 5 years, they expect to sell the warehouse for $5,000,000. Working capital requirements will be $155.000 Up front. CoolTech's tax rate is 40% and their cost of capital is 11% CoolTech's NPV is $ Answer in dollars, rounded to two decimal places. Question 10 1 pts We are replacing a fully depreciated old food processing machine with a new, more efficient model which costs $12000. The machine would be depreciated on a straight-line basis over its 3-year useful life to a book value of $400. At the end of the life of the project (at the year 3 point), the machine will be sold for an estimated $600. The old machine has zero book value and will be scrapped for no money. The project will cause an increase in Sales of $8000 in each of years 1 through 3. It is also expected to enhance efficiencies thereby reducing operating expenses by . & 7 5 6 00. 9 R. T Y U F G .

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