Question: please help answer part a. part b is correct but i cannot get the right answer for a. which is not $-4.341million either.. thank you!

please help answer part a. part b is correct but i cannot get the right answer for a. which is not $-4.341million either.. thank you! please help answer part a. part b is correct but i cannot

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $57 million. The equipment will be depreciated straight line over 6 years to a value of zero, but in fact it can be sold after 6 years for $638,000. The firm believes that working capital at each date must be maintained at a level of 15% of next year's forecast sales. The firm estimates production costs equal to $170 per trap and believes that the traps can be sold for $8 each. Sales forecasts are given in the following table. The project will come to an end in 6 years, when the trap becomes technologically obsolete. The firm's tax bracket is 35%, and the required rate of return on the project is 10%. Use the MACRS depreciation schedule Year: 23 Thereafter Sales (millions of traps) 0.5 0.6 0.8 0.8 0.6 2.4 4 6 a. What is project NPV? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions rounded to 4 decimal places.) Answer is complete but not entirely correct. NPV 5.8648 million b. By how much would NPV increase if the firm depreciated its investment using the 5-year MACRS schedule? (Do not round Intermediate calculations. Enter your answer in whole dollars not in millions.) Answer is complete and correct. The NPV increases 94,530

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