Question: Please see attached thanks Saved Help Save & Ex 11 Check Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It

 Please see attached thanks Saved Help Save & Ex 11 Check

Please see attached thanks

Bottoms Up Diaper Service is considering the purchase of a new industrialwasher. It can purchase the washer for $6,900 and sell its oldwasher for $2,100. The new washer will last for 6 years andsave $1,900 a year in expenses. The opportunity cost of capital is

Saved Help Save & Ex 11 Check Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $6,900 and sell its old washer for $2,100. The new washer will last for 6 years and save $1,900 a year in expenses. The opportunity cost of capital is 18%, and the firm's tax rate is 21% points a. If the firm uses straight-line depreciation over a 6-year life, what are the cash flows of the project in years 0 to 6? The new washer Skipped sign.) will have zero salvage value after 6 years, and the old washer is fully depreciated. (Negative amounts should be indicated by a minus b. What is project NPV? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. What is NPV if the firm investment is entitled to immediate 100% bonus depreciation? (Do not round intermediate calculations. Book Round your answer to 2 decimal places.) Print Annual operating cash flow in year 0 a. Annual operating cash flow in years 1 to 6 b. NPV NPV 11 of 15 Me Prev 12 of 15 Next L O Ei Type here to searchSaved Help Save & Exit Check my PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $110 million on equipment with an assumed life of 5 years and an assumed salvage value of $20 million for tax purposes. The firm uses straight-line depreciation. The old equipment can be sold today for $80 million. A new modem pool can be installed today for $150 million. This will have a 3-year life and nts will be depreciated to zero using straight-line depreciation. The new equipment will enable the firm to increase sales by $24 million per year and decrease operating costs by $12 million per year. At the end of 3 years, the new equipment will be worthless. Assume the Skipped firm's tax rate is 30% and the discount rate for projects of this sort is 8%. Required: a. What is the net cash flow at time 0 if the old equipment is replaced? (Negative amounts should be indicated by a minus sign. Do eBook not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.) b. What are the incremental cash flows in years (i) 1; (ii) 2; (iii) 3? (Do not round intermediate calculations. Enter your answer in Print millions rounded to 2 decimal places.) c. What is the NPV of the replacement project? (Do not round intermediate calculations. Enter the NPV in millions rounded to 2 decimal places.) d. What is the IRR of the replacement project? (Do not round intermediate calculations. Enter the IRR as a percent rounded to 2 decimal places.) Net cash flow million a. Incremental cash flow million per year b. million C. NPV % d. IRR Next >

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