Meals on Wings Inc., which supplies prepared meals for corporate aircraft, needs to purchase new broilers. The new broilers would replace broilers purchased 10 years ago for $105,000, which are being depreciated on a straight-line basis to a zero salvage value (15-year depreciable life). The old broilers can be sold today for $63,000. The new broilers will cost $202,000, installed (not counting funds already spent), and will be depreciated using straight-line depreciation over their 5-year life. They will be sold at their book value at the end of the 5th year. The firm expects to increase its revenues by $27,000 per year if the new broilers are purchased, but cash expenses will also increase by $3,000 per year. Annual interest expense will be $2,000, and net working capital will increase by $5,000. The new broilers will occupy space currently leased to another firm for $530 per month, and $5,000 has already been spent preparing the building for new broilers. The firm's tax rate is 40%. What is the NPV for the proposed acquisition if the cost of capital is 10%? Round your answers to the nearest dollar.
◦ -$61,329
◦ -$53,605
◦ -$49,968
◦ -$46,863
◦ -$44,968
A domestic Muscovy Duck with wings outstretched
This painting depicts New Orleans in 1803, when the city was acquired—along with much of the modern
Is It Safe To Get Your Meals from a Food Truck?
Wings
Four common staining procedures used in chromosomal analysis. Most karyotypes are prepared using G-b
Anchor Bar buffalo and BBQ wings