Question: I need help with these two questions. For the second question I have provided the MACRS table for you. Dog Up! Franks is looking at

I need help with these two questions. For the second question I have provided the MACRS table for you.

I need help with these two questions. For the second question Ihave provided the MACRS table for you. Dog Up! Franks is lookingat a new sausage system with an installed cost of $678,600. This

Dog Up! Franks is looking at a new sausage system with an installed cost of $678,600. This cost will be depreciated straight-line to zero over the project's 5-year life. at the end of which the sausage system can be scrapped for $104,400. The sausage system will save the firm $208,800 per year in pretax operating costs, and the system requires an initial investment in net working capital of $48,720. If the tax rate is 23 percent and the discount rate is 10 percent, what is the NPV of this project? Masters Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $998,400 is estimated to result in $332,800 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the end of the project of $145,600. The press also requires an initial investment in spare parts inventory of $41,600, along with an additional $6,240 in inventory for each succeeding year of the project. If the shop's tax rate is 25 percent and its discount rate is 10 percent, what is the NPV for this project? \f

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