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Author Question: LaSalle Industries is considering the purchase of a new strapping machine, which will cost 150,000, ... (Read 59 times)

nevelica

  • Hero Member
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  • Posts: 563
on: Jul 10, 2018
LaSalle Industries is considering the purchase of a new strapping machine, which will cost
  150,000, plus an additional 10,500 to ship and install.
 
  The new machine will have a 5-year useful
  life and will be depreciated to zero using the straight-line method. The machine is expected to
  generate new sales of 45,000 per year and is expected to save 16,000 in labor and electrical
  expenses over the next 5-years. The machine is expected to have a salvage value of 20,000.
  LaSalle's income tax rate is 35. What is the machine's IRR?
  A) 15.75 B) 18.86 C) 20.03 D) 19.15

Question 2

The forward-spot differential is the difference between the forward rate and the expected future
  spot rate.
 
  Indicate whether the statement is true or false


Toya9913

  • Sr. Member
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  • Posts: 341
Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

FALSE


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