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Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase e

masya89 [10]

Solution :

Calculating the (NPV) Net Present value for the following matters to check the feasibility of the replacement of an 8 year old riveting machine with the new one :

Let

A = Year (n)

B = Initial outlay

C = Five-year MACRS depreciation percentage

D = Depreciation with MACRS Method (D)

E = Savings in earnings before depreciation

F = Taxable Income (earnings before depreciation - depreciation

G = Income taxes (Taxable Income *40%)

H = $\text{After-Tax Net}$ cash flow $\text{(Taxable income - taxes + depreciation)}$

I = PV of $\text{Net cash flow}$ at the rate $12\%$ = $NCF$ / $(1+WACC\%)^n$

A B C D E F G H I

0 82,500 -82,500 -82,500

1 20% 16500 27000 10500 4200 22800 20357.14

2 32% 26400 27000 600 240 26760 21332.91

3 19% 15675 27000 11325 4530 22470 15993.70

4 12% 9900 27000 17100 6840 20160 12812.04

5 11% 9075 27000 17925 7170 19830 11252.07

6 6% 4950 27000 22050 8820 18180 9210.55

7 0% 0 27000 27000 10800 16200 7328.06

8 0% 0 27000 27000 10800 16200 6542.91

NPV $22,329.39

As the NPV, the project is positive ($22,329.39) and so the company should replace the 8 year old riveting machine with the new one.

4 0

2 years ago

Jenny is a line manager at Maxvin Corp. She is assigned the task of understanding and gathering detailed information about the r

ioda

Answer: Option (D)

Explanation:

Job analysis is also referred to as work analysis is known as a family or group of procedures or process taken in order to identify composition of any job in regards with the activities indulged and also job requirements or attributes needed in order to perform these activities. Job analysis tends to provide information of company that helps to evaluate which individual is the best fit for a particular jobs.

7 0

3 years ago

What country is projected to become the world's third major economic power within 10 years and provides information technology a

Keith_Richards [23]

India is the country projected to be the world's third major economic power within 10 years. It will provide information technology and software services to companies in other countries. Harvard researches project that this will happen because India is seeing a constant 7% annual growth rate at present. If this continues, they will be one of the leading countries for economic power compared to their South Asian rivals, particularly, China.

6 0

3 years ago

How did the role of the onondaga people differ from the roles of the other four trives of iroquois nation?

maxonik [38]

According to Articles 1 and 10, the role of the Onondaga differs from that of the other four Iroquois tribes because the Onondaga land is planted with a tree of peace and they are firefighters.

The Mohawks, the Oneidas, the Onondagas, the Cayugas, and the Senecas fought against each other. There was massive bloodshed and death all around us. These people of the five nations have forgotten their ways, and their deeds grieve the creator. The creator decided to send messengers so that the five nations could live in peace. The messenger is called Peacemaker.

Peacemaker was born on the north shore of Lake Ontario. There he grew up with his mother and his grandmother. They quickly realized that this young man was a special person. He always spoke of peace and said that the creator had given him a powerful message.

Learn more about Onondaga here :

brainly.com/question/25785890

#SPJ4

4 0

1 year ago

The transactions demand for money sometimes directly and sometimes inversely with nominal Gross Domestic Product (GDP). varies i

Lunna [17]

Answer: Varies directly with nominal Gross Domestic Product (GDP).

Explanation:

The Transactions Demand for money refers to money that is kept by individuals, companies and even the Government to be able to purchase goods and services.

It varies directly with Nominal GDP because Nominal GDP includes inflation.

If Nominal GDP were to rise for instance, it would mean that Inflation has risen as well which means that people would need more money to be able to buy the now more expensive goods and services. This is an increase in Transactions Demand for money.

The reverse holds true signifying indeed that Transactions Demand for money varies with Nominal GDP.

5 0

3 years ago