Question: Please solve both the parts: part 1: part 2: E HY Annual Expected Sales Annual operating costs R&D costs for past four years Cost of

Please solve both the parts:

part 1:

Please solve both the parts: part 1: part 2: E HY Annual

part 2:

Expected Sales Annual operating costs R&D costs for past four years Cost

E HY Annual Expected Sales Annual operating costs R&D costs for past four years Cost of Equipment Equipment Dep Rate at WDV Scrap value of equipment after 7 years Marginal Tax Rate Hurdle Rate 5,00,000 3,00,000 10,00,000 15,00,000 35% 4,00,000 40% 10% HY Compute: 1) Net Incremental Cash Flows for the project 2) Compute Payback Period, NPV and IRR of the project You must clearly show yearly Cash Flows, Payback Period, NPV and IRR computed and suggest the decisions. HY 4,75,000 5,000 45,000 65,000 1,00,000 HY Cost of Automating Machine Shipping & Installation Cost Annual savings due to reduced scrap Reduction in annual labour costs Current Salvage value of old machine Old machine is fully depreciated Life of new machine Scrape value of new machine after 4 years Rate of WDV Dep. Marginal Rate of Tax Hurdle Rate 4 years H 1,20,000 30% 34% 10% Compute: 1) Net Incremental Cash Flows for the project 2) Compute Payback Period, NPV and IRR of the project You must clearly show yearly Cash Flows, Payback Period, NPV and IRR computed and suggest the decisions

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