Answer:
the company should buy and install the press because the NPV of the project is positive ($73,133.75)
Explanation:
the MACRS 5 year depreciation:
- $375,000 x 20% = $75,000
- $375,000 x 32% = $120,000
- $375,000 x 19.2% = $72,000
- $375,000 x 11.52% = $43,200
- $19,800, since salvage value at year 5 is $45,000
- $0 x 5.76% = $0
salvage value $45,000
total initial investment = $375,000, discount rate = 11%
- cash flow year 1 = {($142,000 - $15,000 - $75,000) x (1 - 34%)} + $75,000 = $109,320
- cash flow year 2 = {($142,000 - $2,000 - $120,000) x (1 - 34%)} + $120,000 = $133,200
- cash flow year 3 = {($142,000 - $2,000 - $72,000) x (1 - 34%)} + $72,000 = $116,880
- cash flow year 4 = {($142,000 - $2,000 - $43,200) x (1 - 34%)} + $43,200 = $107,088
- cash flow year 5 = {($142,000 - $2,000 - $19,800) x (1 - 34%)} + $19,800 + $45,000 = $144,132
the NPV of the project = -$375,000 + $109,320/1.11 + $133,200/1.11² + $116,880/1.11³ + $107,088/1.11⁴ + $144,132/1.11⁵ = $73,133.75
<span>This is, in fact, false. There is not significant data that shows that bad physicians are the ones who get sued, there is, in fact, data that can support just the opposite claim. It is also important to note that Americans file well over 17,000 medical malpractice lawsuits each year</span>
Explanation:
Global investment banks include JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Credit Suisse, and Deutsche Bank.
Ensure that the email is written in a concise, professional, and clean matter devoid of spelling and grammar errors
Answer:
$36,602.5
Explanation:
Your profit each year of saving $7,300 at 8.5% return each year is $620.5
In that case you earn $7,920.5 each. Multiply by 5 years which is the fifth year you made the last deposit, and you will arrive at $36,602.5
