Save 0.7 points You are tasked with evaluating the purchase of a vending machine for the...

 

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Save 0.7 points You are tasked with evaluating the purchase of a vending machine for the snack room. The base price is $4,000 and it would cost another $1,000 to modify the machine to install the machine. The equipment falls in the MACRS 3 year class of depreciation with rates of 33%, 45%6, 15% and 7%. The machine would require an investment in snacks (inventory/net operating working capital) of $800. The machine would produce revenue of $3,000 per year with costs of $800 per year. The firm's tax rate is 2996. The firm plans on selling the machine at the end of three years for $1500 and recovering their investment in net working capital at that time as well. What is the net sale price at time 3 when the equipment is sold? points You are tasked with evaluating the purchase of a vending machine for the snack room. The base price is $4,000 and it would cost another $1,000 to modify the machine to install the machine. The equipment falls in the MACRS 3 year class of depreciation with rates of 33%, 45%, 15% and 7%. The machine would require an investment in snacks (inventory/net operating working capital) of $294. The machine would produce revenue of $3,000 per year with costs of $800 per year. The firm's tax rate is 20%. The firm plans on selling the machine at the end of three years for $1500 and recovering their investment in net working capital at that time as well. What is the initial investment in the machine? Save 0.7 points You are tasked with evaluating the purchase of a vending machine for the snack room. The base price is $4,000 and it would cost another $1,000 to modify the machine to install the machine. The equipment falls in the MACRS 3 year class of depreciation with rates of 33%, 45%6, 15% and 7%. The machine would require an investment in snacks (inventory/net operating working capital) of $800. The machine would produce revenue of $3,000 per year with costs of $800 per year. The firm's tax rate is 2996. The firm plans on selling the machine at the end of three years for $1500 and recovering their investment in net working capital at that time as well. What is the net sale price at time 3 when the equipment is sold? points You are tasked with evaluating the purchase of a vending machine for the snack room. The base price is $4,000 and it would cost another $1,000 to modify the machine to install the machine. The equipment falls in the MACRS 3 year class of depreciation with rates of 33%, 45%, 15% and 7%. The machine would require an investment in snacks (inventory/net operating working capital) of $294. The machine would produce revenue of $3,000 per year with costs of $800 per year. The firm's tax rate is 20%. The firm plans on selling the machine at the end of three years for $1500 and recovering their investment in net working capital at that time as well. What is the initial investment in the machine?