what is the NPV of this project?

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Calculation of equivalent annual savings: Answer: Equivalent annual savings is $14,777.60…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Calculation of Annual Depreciation Tax Shield:

Q: Esfandairi Enterprises is considering a new three-year expansion project that requires an initial…

A: The operating cash flow can be computed after considering the effect of sales, costs and…

Q: SummerTyme Inc is considering a new three year expansion project that requires an initial fixed…

A: Hi, there, thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Your company is considering a new project that will require $100,000 of new equipment at the start…

A: Given:

Q: Dog Up! Franks is looking at a new sausage system with an installed cost of $561,600. This cost will…

A:

Q: John's cafe is considering the purchase of a waffle maker that cost $10,000. The waffle maker has an…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: Nashville Inc is contemplating the purchase of a machine capable of performing someoperations that…

A: Annual cash flows from a project need not be in cash form, as it is said 'a dollar saved is a dollar…

Q: Dog Up! Franks is looking at a new sausage system with an installed cost of $600,600. This cost will…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: Gateway Communications is considering a project with an initial fixed assets cost of $1.50 million…

A: Capital budgeting refers to the evaluation of the profitability of potential investment and projects…

Q: ordan is considering purchasing an investment costing $42,000 that will save power costs of $14,000…

A: In this question, we have to calculate the cashflow after taxes each year.

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Equivalent annual savings is $10,226.31.  Computation of equivalent annual savings: Excel spread…

Q: Dog Up! Franks is looking at a new sausage system with an installed cost of $680,000. This cost will…

A: Net present value (NPV) of an alternative/project refers to the difference between the initial…

Q: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed…

A: Initial investment is $2,400,000 Tax rate is 23% Required rate of return  is 10% Estimated annual…

Q: Elder, Inc. is considering the purchase of a new air-handling system that will have no effect on…

A: Savings means the amount which a firm earns by installing a new plant or project. The project which…

Q: Quad Enterprises is considering a new three-year expansion project that requires an initial fixed…

A: NPV refers to the Net value added by a decision. This is computed as the present value of cash…

Q: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed…

A: Net present value is the excess of present value of cash inflows over initial investment made by a…

Q: Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax…

A: Hi there, thank you for question. Question has mulltiple sub parts. As per company guidelines expert…

Q: ACDC Company is considering the installation of a new machine that costs $150,000. The machine is…

A: The internal rate of return is the rate of return a project generates in its lifetime expressed in a…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Initial investment of the company is the sum of the cost of high pressure glueball plus after tax…

Q: Dog Up! Franks is looking at a new sausage system with an installed cost of $385,000. This cost will…

A: Net Present Value is a capital budgeting technique that is used to decide whether the investment…

Q: fter tax annual cost

A: Cash flow represents the money in and out of the company. It refers to the financial statement that…

Q: Your company wants to bid on the sale of 10 customized machines per year for five years. The initial…

A: Here we need to find sales level for bid by using this equation OCF =[Sales -variable cost-fixed…

Q: HaulCo is considering the purchase of a truck. Over its five year life, it will provide net revenues…

A: Given Information:Initial cost of truck is $65,000 Annual net revenue is $15,000 Salvage value is…

Q: Esfandairi Enterprises is considering a new three-year expansion project that requires an initial…

A: The NPV analysis is used to figure out the value of an investment by using the concept of the time…

Q: Dog up! Franks is looking at a new sausage system with an installed cost of $390,000. This cost will…

A: Net present value=Present value of cash inflows-present value of cash outflows.

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Here, Purchase price of Glueball is $170,000 Selling Price of Old low-pressure glueball is $30,000…

Q: The TinX Corp. is investing in a machine which will increase the quality of their product.The…

A: Particulars Year 1 yYear 2 Year 3 Year 4 Sales 4,00,000 4,00,000 4,00,000 4,00,000 Less:-…

Q: What is the project’s NPV?

A: Net Present Value method (NPV) is a capital budgeting method used for finding the profitability…

Q: Concose Park Department is considering a new capital investment. The cost of the machine is​…

A: Net Present Value = Present Value of Cash Inflows – Present Value of Cash Outflows where, Present…

Q: our firm is considering a project that would cost $325,000 and be depreciated straight-line over…

A: In this we have to find out the present value and equivalent annual cost.

Q: Your firm needs a machine which costs $250,000, and requires $46,000 in maintenance for each year of…

A: Seven years macrs depreciation  1 years =14.29 2 year=24.49 3 year=17.49 4 year =12.49 5 year =8.93…

Q: Garry Manufacturing Company is considering a three-year project that has a cost of $75,000. The…

A: Formulas:

Q: Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax…

A: Net Present Value(NPV) is the difference between the Present value of Cash Outflow and Present Value…

Q: Dog Up! Franks is looking at a new sausage system with an installed cost of $440,000. This cost will…

A: The question is based on the concept of capital budgeting technique by use of Net present Value…

Q: Gluon Inc. is considering the purchase of a new high pressure glueball. It can purchase the glueball…

A: Equivalent annual savings is the annual savings made by operating and maintaining the assets over…

Q: Dog Up! Franks is looking at a new sausage system with an installed cost of $218,400. This cost will…

A: Computation of after tax salvage value:After tax salvage value= salvage…

Q: Tasty Bakery Co. is considering a new product line. In order to manufacture the new product, the…

A: If the present value of cash flows is more than the amount of current investment, then the project…

Q: Your firm needs a machine which costs $210,000, and requires $36,000 in maintenance for each year of…

A: Computation of tax shield on depreciation: Depreciation=Cost of asset×Depreciation rate for year…

Q: Dog Up! Franks is looking at a new sausage system with an installed cost of $600,600. This cost will…

A: Initial cost is $600,600 and net working capital is $43,120. Operating cost is $184,800 and Scrap…

Q: Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed…

A: An operating cash flow (OCF) is a cash flow that a firm generates from its operating activities of…

Q: Concose Park Department is considering a new capital investment. The cost of the machine is…

A: Calculate net present value.

Q: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed…

A: Operating Cash Flows(OCF) refers to cash generated by an entity from its regular business activities…

Q: Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax…

A: Net present value of the project is both optimistic and pessimistic situation is calculated wherein…

Q: . What is the Year-0 cash flow? b. What are the cash flows in Years 1, 2, and 3? c. What is the…

A: The net present value is capital budgeting method which is calculated based on present value of cash…

Q: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed…

A: NPV is the net present value of cash flows i.e. PV of inflows less PV of outflows. PV of outflows is…

Q: Your firm needs a computerized machine tool lathe that costs $50,000 and requires $12,000 in…

A: Working note:

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.