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Author Question: The Munsell Color Company is considering the purchase of a new batch polymer-bonding machine for ... (Read 107 times)

809779

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The Munsell Color Company is considering the purchase of a new batch polymer-bonding machine for producing its number one line of crayons. Although the machine being considered will not produce any increase in sales revenues, it will result in the before-tax reduction of labor costs by $200,000 per year. The machine has a purchase price of $250,000, and it would cost an additional $10,000 to install the machine. In addition, to operate this machine, inventory must be increased by $15,000. The machine is categorized as 10-year property. After 2 years, it can be sold for $150,000. The tax rate is 34% and the cost of capital is 15%. What is the NPV for the proposed acquisition if the cost of capital is 15%? 

MACRS Depreciation Rates
Year10-Year15-Year
110.00%5.00%
218.00%9.50%
314.40%8.55%

◦ $74,392
◦ $81,567
◦ $89,541
◦ $93,640
◦ $99,792


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Marked as best answer by 809779 on Apr 25, 2021

Meganchabluk

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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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809779

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it


coreycathey

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Reply 3 on: Yesterday
Gracias!

 

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