Question: this is my third time asking this question on here due to wrong answers. i kindly ask that if you are unsure of what you
A new electronic process monitor costs $990,000. This cost could be depreciated at 30% per year (Class 10). The monitor would actually be worth $100,000 in five years. The new monitor would save $460,000 per year before taxes and operating costs. The new monitor requires us to increase net working capital by $47,200 when we buy it. Assume a tax rate of 40% a. If we requlre a 15% return, what is the NPV of the purchase? (Do not round intermediate calculations, Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ 194703.78 b. Suppose the monitor was assigned a 25% CCA rate. Calculate the new NPV. (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ 1513496.27 c. Will the NPV at 25% CCA rate be farger or smaller? Smaller Larger A new electronic process monitor costs $990,000. This cost could be depreciated at 30% per year (Class 10). The monitor would actually be worth $100,000 in five years. The new monitor would save $460,000 per year before taxes and operating costs. The new monitor requires us to increase net working capital by $47,200 when we buy it. Assume a tax rate of 40% a. If we requlre a 15% return, what is the NPV of the purchase? (Do not round intermediate calculations, Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ 194703.78 b. Suppose the monitor was assigned a 25% CCA rate. Calculate the new NPV. (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ 1513496.27 c. Will the NPV at 25% CCA rate be farger or smaller? Smaller Larger
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