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Author Question: A new machine can be purchased for 1,800,000. It will cost 35,000 to ship and 15,000 to fine-tune ... (Read 79 times)

Diane

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on: Jul 10, 2018
A new machine can be purchased for 1,800,000. It will cost 35,000 to ship and 15,000 to
  fine-tune the machine. The new machine will replace an older version that is fully depreciated and
  will be sold for 200,000.
 
  The firm's income tax rate is 35. What is the initial outlay for capital
  budgeting purposes?
  A) 1,720,000 B) 1,580,000 C) 1,650,000 D) 1,630,000

Question 2

Donner, Inc will finance a proposed investment by issuing new securities while maintaining its
  optimal capital structure of 60 debt and 40 equity. The firm can issue bonds at a price of 950.00
  before 15 flotation costs.
 
  The 10-year bonds will have an annual coupon rate of 8 and a face
  value of 1,000. The company can issue new equity at a before-tax cost of 16 and its marginal tax
  rate is 34. What is the appropriate cost of capital to use in analyzing this project?
  A) 11.81 B) 8.77 C) 9.97 D) 3.63
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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vickyvicksss

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Diane

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

Liamb2179

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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