Yam Hash Inc. is interested in assessing the cash flows associated with the purchase of new equipment. Considering the incremental proposal for which the relevant information is as follows:
Purchase price of asset is 5 millions rupees. The installation cost associated with the new machinery is 0.1% of purchase price and falls under the 5-year MACRS class. It is expected that new machine will consume more power and is expected to cost 2% of the purchase price. New machine is expected to generate savings that are equal to 75% of the purchase price of asset for 6 years. After sixth year, machine may be sold @5% of its purchase price. Company falls in 40% tax bracket.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here