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%. ( 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)

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented