Question: method to depreciate the machine, and management thinks the machine would have a value of $26,000 at the end of its 5-year operating life. The

 method to depreciate the machine, and management thinks the machine would
have a value of $26,000 at the end of its 5-year operating

method to depreciate the machine, and management thinks the machine would have a value of $26,000 at the end of its 5-year operating life. The applicable depreclation rates are UN 45% 15% and 7%. Net ope ating workin g capital would increase by S24 000 initially, but it would be recovered at the end of the pro ect's 5-year fe. Holm es's marginal tax rate is 40%, and a 12% WACC is appropriate for the project. a. Calculate the s NPV. Round your answer to the nearest cent. s IRR. Round your answer to two decimal places. Calculate the Calculate the project's MIRR. Round your answer to two decimal places Caloulate the project's payback. Round your answer to two decimal places years b. Assume management is unsure about the $90,000 cost savings this figure could deviate by as much as plus or minus 20%, what would the under each of these situations? Round your answers to the nearest cent. Negative amount should be indicated by a minus sign 20% savings increase. 20% savings decreases with different values for the cost savings, the machine's salvage value, and the net operating working capital (NoWC) c. Suppose the CFO wants you to do a scenario analysis w 20% savings increase. 0% savings decrease. c. Suppose the CFO wants you to do a scenario analysls with different values for the cost savings, the machine's salvage value, and the net operating working capital (NOWC) requirement. She asks you to use the following probabilities and values in the scenario analysis: 0.35 0.35 0.30 $72,000 Worst case Base case Best case 24,000 19,000 Calculate the project's expected NPV, its standard deviation, and its coefficient of variation Round your answers to two decimal places 26,000 31,000 108,000 EN) CV that the project be accepted

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