1) Find the NPV of a project that will involves an initial investment of $25,000, then another outlay of $10,000 after one year. It will give a cash flow of $6,000 annually for seven years, at the end of year 3 through year 9. The proper discount rate is 9%. Is it a profitable project? 2) Quincy Corporation is in the 30% income tax bracket. It needs a new computer costing $55,000, which will last for 5 years. Quincy uses straight-line basis depreciation. The computer will save the company $12,000 annually. The proper discount rate is 10%. Should Quincy buy the computer? 3) A machine has an expected life of 6 years. It costs $30,000 and increases the net income of the company by $7,000 annually. It has a salvage value of $5,000. The proper discount rate is 12% and the company pays no taxes at present. Would you recommend the purchase of this machine?4) A machine will run for 3 years (probability .35) or 4 years (probability .65). The annual revenue from the machine, before taxes, is $12,000. The proper discount rate in this case is 14% and there are no taxes. The machine will cost $40,000. Should the firm buy the machine? 5) Hammond Corp. has an income tax rate of 32% and its after-tax discount rate is 9%. Hammond plans to buy a machine for $53,000 that will depreciate on a straight-line basis for 6 years with no salvage value. What is the minimum annual pretax income generated by this machine per year to justify its purchase? 6) Gore Corporation wants to buy a machine that will save it $2,000 before taxes per year. This machine will last for 5 years and Gore will depreciate it over that period with no resale value. The tax rate of Gore is 30% and its discount rate is 12%. Find the maximum price that Gore should pay for this machine. 7) Greenland Corporation needs a machine that costs $40,000. The company will depreciate it over 4 years using straight-line depreciation. The machine, however, has a useful life of 5 years during which it will generate $10,000 annually in pretax revenue. The cost of capital for Greenland is 11% and its income tax rate is 30%. Should Greenland buy the machine? 8) Allen Corp. is considering the purchase of a machine that costs $27,000 and is expected to run for 5 years and then resold for $2,000. The total available depreciation is thus $25,000. The yearly earnings before taxes from this machine are $6,000. The tax rate of Allen is 30% and its cost of capital is 12%. Should Allen buy the machine?
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Achiever Papers is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Dissertation Writing Service Works
First, you will need to complete an order form. It's not difficult but, if anything is unclear, you may always chat with us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download