A company buys a production machine at a price of Rp. 70,000,000.00 and will be used for 5 years until the salvage value is zero. The gross income generated by this machine is Rp. 45,000,000.00 per year. Operating expenses for the first to fifth year are Rp. 15,000,000.00. p. 16,000,000.00, 17,000,000.00, Rp. 18,000,000.00, and Rp. 19,000,000.00 respectively. Income tax (T) is 34% and the MARR (i) is 8%. Calculate the NPV from the cash flow after-tax for the machine using the Double Declining Balance Method!

A company buys a production machine at a price of Rp. 70,000,000.00 and will be used for 5 years until the salvage value is zero. The gross income generated by this machine is Rp. 45,000,000.00 per year. Operating expenses for the first to fifth year are Rp. 15,000,000.00. p. 16,000,000.00, 17,000,000.00, Rp. 18,000,000.00, and Rp. 19,000,000.00 respectively. Income tax (T) is 34% and the MARR (i) is 8%. Calculate the NPV from the cash flow after-tax for the machine using the Double Declining Balance Method!

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 9PROB

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