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Author Question: Majestic Theatres is considering investing in some new projection equipment whose data are shown ... (Read 29 times)

fungirl

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on: Aug 7, 2023
Majestic Theatres is considering investing in some new projection equipment whose data are shown below. The required equipment has a 7-year project life falling into a CCA class of 30%, but it would have a positive pre-tax salvage value at the end of Year 7. Also, some new working capital would be required, but it would be recovered at the end of the project’s life. Revenues and cash operating costs are expected to be constant over the project’s 7-year life. What is the project’s NPV?

​

WACC

13%

Net capital investment in fixed assets

$980,000

Required new working capital

$40,000

Sales revenues, each year

$690,000

Cash operating costs, each year

$370,000

Expected pre-tax salvage value

$60,000

Tax rate

33%

​


◦

$177,492


◦

$178,517


◦

$179,160


◦

$180,702

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by fungirl on Aug 7, 2023

Rcfelber

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Reply #1 on: Aug 7, 2023
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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fungirl

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Reply 2 on: Aug 7, 2023
Excellent

Liddy

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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