Business, 27.04.2021 15:20 cupcakesmc619

Raytheon wishes to use an automated environmental chamber in the manufacture of electronic components. The chamber is to be used for rigorous reliability testing and burn-in. It is installed for $1,340,000 and will have a salvage value of $170,000 after 8 years. Its use will create an opportunity to increase sales by $650,000 per year and will have operating expenses of $250,000 per year. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 5-year property, taxes are 40%, the real after-tax MARR is 10%, and inflation is 3.4% a. Determine the actual after-tax cash flows for each year ATCF0 = $ ATCF1 = $ ATCF2 = $ ATCF3 = $ ATCF4ー寧 ATCF5 = $ ATCF6 = $ ATCF8 = $
b. Determine the PW of the after-tax cash flows
c. Determine the AW of the after-tax cash flows AN ST = $
d. Determine the FW of the after-tax cash flows FWST=
e. Determine the combined IRR of the after-tax cash flows IRRc
f. Determine the combined ERR of the after-tax cash flows ERRc
g. Determine the real IRR of the after-tax cash flows IRRr-
h. Determine the real ERR of the after-tax cash flows

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 16:50

The bonds issued by the south foot bear a coupon rate of 7.5 percent, payable semiannually. the bonds mature in 6.5 years, sell at par, and have a $1,000 face value. what is the yield to maturity

Answers: 3

Answer

Business, 21.06.2019 20:30

Peppy roaney believes that pizza is a much more versatile dish than most people realize. as the national marketing manager for pizza guys, he observed how consumers were delighted with barbecue pizza, hawaiian pizza, mexican pizza and other unique combinations. his suggestions for other unusual pizzas, however, were met with a negative response by his superiors. even some of his colleagues laughed at his ideas. peppy's confidence in his ability to understand the market has led him to focus on planning a business of his own. peppy realizes that he will take a risk when he leaves his job with pizza guys and embarks upon a new venture: peppy's pizzazzeria. peppy is excited about the potential of profitably catering to the unmet desires of pizza consumers. peppy is confident that peppy's pizzazzeria will be a success, but only if he has enough money to do things right. since peppy has very little personal wealth, he knows he must obtain financial assistance. in order to prepare for meetings with bankers and p

Answers: 1

Answer

Business, 22.06.2019 07:30

When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates

Answers: 1

Answer

Business, 22.06.2019 12:10

Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is:

Answers: 2

Answer

You know the right answer?

Raytheon wishes to use an automated environmental chamber in the manufacture of electronic component...

Questions