Nine Point Industries is trying to decide whether to invest in equipment to manufacture a new product. If the investment project is accepted, sales revenue will increase by $94,000 per year and...


18


Nine Point Industries is trying to decide whether to invest in equipment to manufacture a new<br>product. If the investment project is accepted, sales revenue will increase by $94,000 per year<br>and materials costs will decrease by $37,000 per year. The equipment will cost $148,000 and is<br>depreciable over 8 years using simplified straight line (zero salvage value). The firm has a<br>marginal tax rate of 34%. Calculate the firm's annual cash flows resulting from the new project.<br>Set your calculator to 4 decimal places and round to a whole number at the end. For example, if<br>your answer is 1,000 enter it as 1000. DO NOT ENTER THE DOLLAR SIGN.<br>

Extracted text: Nine Point Industries is trying to decide whether to invest in equipment to manufacture a new product. If the investment project is accepted, sales revenue will increase by $94,000 per year and materials costs will decrease by $37,000 per year. The equipment will cost $148,000 and is depreciable over 8 years using simplified straight line (zero salvage value). The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows resulting from the new project. Set your calculator to 4 decimal places and round to a whole number at the end. For example, if your answer is 1,000 enter it as 1000. DO NOT ENTER THE DOLLAR SIGN.

Jun 04, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here