Year 1 2 3 4 5 PI Manufacturing is looking into buying two additional manufacturing lines....
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Year 1 2 3 4 5 PI Manufacturing is looking into buying two additional manufacturing lines. Both projects are independent. The cash outlay for a manual line is $54,750, and that for the semi automated production line is $125,500. The firm's cost of capital is 14%. Aftertax cash flows are listed below, note that these include depreciation. Calculate the NPV, IRR and PI for each project and indicate the correct accept/reject decision for each assessment criteria. 6 Manual $15,850 14,750 13,000 15,890 14,750 13,000 SemiAutomated $30,200 33,750 30,000 29,575 31,780 32,000 Year 1 2 3 4 5 PI Manufacturing is looking into buying two additional manufacturing lines. Both projects are independent. The cash outlay for a manual line is $54,750, and that for the semi automated production line is $125,500. The firm's cost of capital is 14%. Aftertax cash flows are listed below, note that these include depreciation. Calculate the NPV, IRR and PI for each project and indicate the correct accept/reject decision for each assessment criteria. 6 Manual $15,850 14,750 13,000 15,890 14,750 13,000 SemiAutomated $30,200 33,750 30,000 29,575 31,780 32,000
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1 Calculate the NPV IRR and PI of Manual line as follows Given initial outlay is 54750 Cash flow as ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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