Question: Time Win 1:41:51 Quir navig hoon JA / me are considering purchasing the assets of a robotics company in bankruptcy, The previous owners of Im

 Time Win 1:41:51 Quir navig hoon JA / me are consideringpurchasing the assets of a robotics company in bankruptcy, The previous ownersof Im Can Robotics End invested $590,090 in a revolutionary waste management

Time Win 1:41:51 Quir navig hoon JA / me are considering purchasing the assets of a robotics company in bankruptcy, The previous owners of Im Can Robotics End invested $590,090 in a revolutionary waste management system and were on the point by launching the service. but ran out of money. The brothers believe the technology will work and the Knots Marked out of would pay $300.000 to purchase the system for their company. The equipment can be put into use immediately and it is expected to generate revenues of $900,000 annually for the initial five years. increasing to $525.000 per year for the final five years. Cash expenses will be.$360,000 gunnbon per year for ten years. Working capital of $75,000 will have to be injected at the start of operations to support Finish anempt sales If the project proceeds. an overhaul of the equipment will be required at the end of year s at a cost of 1209,000 (cost to be capitalized). Ten years from now, the equipment can be salvaged for $80.00D, CCA Rate: 304, Tax Rate: 399%. WACC: 109. Given the above information: Total Cash flow in year 0 is: Os(375,000) O$(300,000) O$(75,000) Os(350,000) PV of the overhaul is? OS(112 895) Os(146,084) Os(419.034)3(350,000) PV of the overhaul is? Of(112.095) ON(146.004) Os(419,034) 05(715,000) What is the PV for revenue form year 1 to year 5? O$1, 156, 190 O$305,000 O$1,355,378 O$789,352 What is the PV for revenue form year 6 to year 10? O$753.798 O$1,596,457 O$1.213.999 $856.324What is the PV for expenses for year 1 to your 109 OH(1,349,347) 05(987 352) 3(1,532 982) Os(2,182340) PV for the selvage? O$30,64A O$32,466 0445.323 0535,893 Next page vious page

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