Question: I'm having some trouble on these two problems. If anyone can help me I would greatly appreciate it. Thank you and have a great day.

I'm having some trouble on these two problems. If anyone can help me I would greatly appreciate it. Thank you and have a great day.

I'm having some trouble on these two problems. IfI'm having some trouble on these two problems. If
6 Chrome File Edit View History Bookmarks Profiles Tab Window Help M '4? Q E TueApr4 4:19PM m Question 1 - h12b: Chapter 12 l x h12b: Chapter 12 Homework - B 0 Saved Help Save& Exit Submit Oregon Forest Products will acquire new equipment that falls under the ve-year MACRS category. The cost is $280,000. If the equipment is purchased, the following earnings before depreciation and taxes will be generated for the next six years. Use Table 12 2. 10 Earnings before Depreciation $ 81, 000 106, 000 75,000 48, 000 Hint Year 39,000 Year 27, 000 Pnt r points Year Year eBook Year Year mulsbuNl-I R f e erences The rm is in a 25 percent tax bracket and has a 11 percent cost of capital. a. Calculate the net present value. (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole dollar amount.) Net present value $ (102,135.00) b. Under the net present value method, should Oregon Forest Products purchase the equipment asset? 0 Yes (a My. 1 .' chrome File Edit View History Bookmarks Profiles Tab Window Help @ (9 (:1: 6? Q 8 Tue Apr 4 4:19 PM \"' N . O . m Question 2 - h12b: Chapter 12 x + v 6 9 C' 6 ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/quest... [I] 7} El 9 E h12b: Chapter 12 Homework B 0 Saved Help Save& Exit Submit 2 The Spartan Technology Company has a proposed contract with the Digital Systems Company of Michigan. The initial investment in land and equipment will be $230,000. Of this amount, $160,000 is subject to five-year MACRS depreciation. The balance is in nondepreciable property. The contract covers six years; at the end of six years, the nondepreciable assets will be sold for $70,000. 10 The depreciated assets will have zero resale value. Use Table 12-12. points eBook Hint Print References The contract will require an additional investment of $52,000 in working capital at the beginning of the first year and, of this amount, $32,000 will be returned to the Spartan Technology Company after six years. The investment will produce $71,000 in income before depreciation and taxes for each of the six years. The corporation is in a 25 percent tax bracket and has a 8 percent cost of capital. 3. Calculate the net present value. (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value $ 109,095.56 b. Should the investment be undertaken? Yes 0 No .N.e.X.t )

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