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Turntec is considering replacing an automatic shuttle machine

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Turntec is considering replacing an automatic shuttle machine that has a book value of $2,000 and a $0 market value with a more efficient machine that will cost $24,000. The annual net cash flows from the new equipment are expected to be $6,000 for the next 6 years. What is the net present value of this project? Assume the firm's cost of capital is 12 percent and it's marginal tax rate is 40 percent.;a. $666;b. $1,466;c. - $134;d. $1,866

 

Paper#22519 | Written in 18-Jul-2015

Price : $27
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