Workbook VI Name Before beginning this problem you must enter the last four digits of your student ID#. The worksheets that follow will not be populated with your data until you enter the four digit code in this box. 4143 The following worksheets correspond to assignments for the individual units in this lesson. Once you have completed all of these worksheets, send the saved workbook to the instructor before the closing date for this lesson. CCNY, Inc. is considering the acquistition of a new left-handed press. The base price of the press is indicated below. In addition there are modification costs, noted below, for CCNY's special use. The press falls into the MACRS 3-year class. The new press is expected to speed up production and result in an increase in gross annual sales and an increase in annual variable costs as noted below. Inventories, accounts payable, and accounts receivable are all expected to increase (as noted) to support the heightened activity. The press is expected to be sold after three years for the given salvage value. The tax rate and appropriate discount rate are noted. Find the NPV of this project and indicate if the press should be purchased. Base Price $3,827,422

modification costs $45,090 Variable cost increase $1,352,700 Gross Sales increase $2,705,400

Salvage Value $1,148,227 Accounts receivable change $202,905 Inventory Change $54,108 Accounts payable change $279,558 Discount rate 12% Tax rate 30% NPV? WORK AREA Purchase (yes or no) ?