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Alex_Xolod [135]
3 years ago
12

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose machine. The

machine's total price including installation and delivery is $70,000. The machine falls into the four-year class using straight line depreciation method, and it will be sold after four years for $0. The use of this new machine will bring revenue of $25,000 annually for 4 years, and will have annual maintenance expense of $5,000. The firm's marginal tax rate is 40 percent and the required rate of return is 10%. (Please show your work)
a. What is the initial investment ? (keep your number as a whole number: example of answer format: $1,000)
b. What is the Cash Flow at year 1 ? ( keep your number as a whole number: example of answer format: $1,000 )
c. What is the Cash Flow at year 4 ? ( keep your number as a whole number: example of answer format: $1,000 )
d. What is NPV ? ( keep your number to two decimals: example of answer format: $1,000.00 or if it's negative, then -$1,000.00)
Business
1 answer:
Vesnalui [34]3 years ago
8 0

Answer:

Explanation: download the manual if you may get and get solutions

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Explanation:

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A negative externality or spillover cost occurs when  the total cost of producing a good exceeds the costs borne by the producer.

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To learn more about spillover cost, refer: brainly.com/question/2966591

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