& [ Question 2 - Week 10 - Chapter 12 Homework - Connect = [l X & G M ) https://ezto.mheducation.com/ext/map/indexhtmi?_con=con&external_browser=08&launchUrl=https%253A%252F%252Fconnect.... A y o = % o O A Amazon.com - Onli.. E Bocking.com U McAfee Security D Bockmarks & Home |3 Suggested Sites WildTangent Games ] Imported From IE ] Toshiba > [77] Other favorites 6 Week 10 - Chapter 12 Homework o Saved Help Save & Exit Submit Q, Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. w & 2 s .' eEgg is considering the purchase of a new distributed network computer system to help handle its warehouse inventories. The system & costs $40,000 to purchase and install and $23.000 to operate each year. The system is estimated to be useful for 4 years. Management expects the new system to reduce the cost of managing inventories by $44,000 per year. The firm's cost of capital o 3 (discount rate) is 12%. paoints Required: 1. What is the net present value (NPV) of the proposed investment under each of the following independent situations? (Use the + appropriate present value factors from Appendix C, TABLE 1 and Appendix C,_ TABLE 2) 1a. The firm is not yet profitable and therefore pays no income taxes. 1b. The firm is in the 25% income tax bracket and uses straight-line (SLN) depreciation with no salvage value. Assume MACRS rules do not apply. 1c. The firm is in the 25% income tax bracket and uses double-declining-balance (DDB) depreciation with no salvage value. Given a four-year life, the DDB depreciation rate is 50% (i.e, 2 25%). In year four, record depreciation expense as the net book value (NBV) of the asset at the start of the year. 2. What is the internal rate of return (IRR) of the propesed investment for situations in requirement 1, parts (a) through (c)? Use the IRR builit-in function in Excel to compute the IRR Answer is not complete. ) - 8:57 PM =.. Q, Search . E a 8/2/2024 = M Question 2 - Week 10 - Chapter 12 Homework - Connect X n https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https%253A%252F%252Fconnect... . . a Amazon.com - Onli... B. Booking.com McAfee Security Bookmarks 3 Home , Suggested Sites W WildTangent Games Imported From IE Toshiba > Other favorites Week 10 - Chapter 12 Homework Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. O Return to question 2 builit-in function in Excel to compute the IRR. a o * Answer is not complete. 3 Complete this question by entering your answers in the tabs below. points + Req 1A Req 1B Req 1C Req 2 The firm is not yet profitable and therefore pays no income taxes. (Round your answer to nearest whole dollar amount.) Net present value $ 27,747 x M Mc + Graw Hill Q Search 8:57 PM H 9/2/2024M Question 2 - Week 10 - Chapter 12 Homework - Connect X n https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https%253A%252F%252Fconnect... . . a Amazon.com - Onli... B. Booking.com McAfee Security Bookmarks 3 Home , Suggested Sites W WildTangent Games Imported From IE Toshiba > Other favorites Week 10 - Chapter 12 Homework Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. O Return to question 2 builit-in function in Excel to compute the IRR. a o * Answer is not complete. 3 Complete this question by entering your answers in the tabs below. points + Req 1A Req 1B Req 1C Req 2 The firm is in the 25% income tax bracket and uses straight-line (SLN) depreciation with no salvage value. Assume MACRS rules do not apply. (Round your answer to nearest whole dollar amount.) Net present value $ 27,747 x M Mc + Graw Hill Q Search 8:57 PM 9/2/2024M Question 2 - Week 10 - Chapter 12 Homework - Connect X n https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https%253A%252F%252Fconnect... . . a Amazon.com - Onli... B. Booking.com McAfee Security Bookmarks 3 Home , Suggested Sites W WildTangent Games Imported From IE Toshiba > Other favorites Week 10 - Chapter 12 Homework Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. O Return to question 2 Keq JA Keq 1B Keq IL Keq 2 a The firm is in the 25% income tax bracket and uses double-declining-balance (DDB) depreciation with no salvage value. Given a o four-year life, the DDB depreciation rate is 50% (i.e., 2 x 25%). In year four, record depreciation expense as the net book value (NBV) of the asset at the start of the year. (Negative amounts should be indicated by a minus sign. Round discount factor to 3 3 decimal places and other answers to the nearest whole dollar amount.) points Show less A Pre-Tax DDB After-tax + Year Cash Depreciation Taxable Income Net Cash Discount Present Inflows Expense Income Taxes Inflow Factor Values 0 1 2 3 4 Net present value (NPV) S 0 M Mc + Graw Hill 8:58 PM Q Search 9/2/2024M Question 2 - Week 10 - Chapter 12 Homework - Connect X n https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=08launchUrl=https%253A%252F%252Fconnect... . . a Amazon.com - Onli... B. Booking.com McAfee Security Bookmarks 3 Home , Suggested Sites W WildTangent Games Imported From IE Toshiba > Other favorites Week 10 - Chapter 12 Homework Saved Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. O Return to question 2 Complete this question by entering your answers in the tabs below. a o Req 1A Req 1B Req 1C Req 2 3 points What is the internal rate of return (IRR) of the proposed investment for situations in requirement 1, parts (a) through (c)? Use the IRR builit-in function in Excel to compute the IRR. (Round "Estimated IRR" to 1 decimal place.) + Estimated IRR % b C M Mc + Graw Hill 8:58 PM H Q Search 9/2/2024