Question: Please ANSWER THESE QUESTIONS, This is the fifth time I've submitted it. FIN 3320 PS 5: Capital Budgeting Due April 5, 21122 at 11:59pm 1.

Please ANSWER THESE QUESTIONS, This is the fifth time I've submitted it.

Please ANSWER THESE QUESTIONS, This is the fifth
FIN 3320 PS 5: Capital Budgeting Due April 5, 21122 at 11:59pm 1. A corporation is considering purchasing a machine that has an expected eight-year life and will generate for the rm $11,000 per year in net operating income before taxes. The machine will be depreciated using the straight-line method to its anticipated salvage value of $12,000. The rm has a 34% marginal tax rate and the required return for this project is 12% pa. lfthe machine costs $60,000. should it be purchased? 2 A corporation is considering purchasing a machine that has an 8-year life and will save the rm $4.500 per year in net operating costs. The machine would be depreciated on a straight-line basis to a we value. The rm has a 34% hut rate and a 12% pa. required rate of return on this project. 2.a if the machine costs $25,000. what is its NW and payback period? 2.blf the machine can be leased for $4.000 per year payable at the end of each year. should the rm buy the machine or lease it? 3. Cement Inc. is considering an investment opportunity that requires an initial outlay equal to 3575.000. In years 1 and 2 the net cash ows are expected to equal $500,000. The required rate of return is 25% pa. 3:. Given that the Cement Inc.'s criterion whether to invest or not is the project's internal rate of return [lRR]. should the rm's managers invest in this project? Is the [RR criterion the correct decision rule in this case

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