This paper circulates around the core theme of Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real net. 1 answer below » Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $190,000. Phillips is together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Mayco, Inc. is considering the purchase of a new machine for $60,000. The machine will reduce… 1 answer below » Mayco, Inc. is considering the purchase of a new machine for $60,000. The machine will reduce manufacturing costs by $5,000 annually. Mayco will use the modified accelerated cost recovery system (MACRS) accelerated method (5-year asset) to depreciate the machine and expects to sell the machine at the end of its 6-year operating life for $10,000. The firm expects to be able to reduce networking capital by $15,000 when the machine is installed, but required working capital will return to the original level when the machine is sold after six years. Mayea’s marginal tax rate is 40%, and it uses a View complete question » Mayco, Inc. is considering the purchase of a new machine for $60,000. The machine will reduce manufacturing costs by $5,000 annually. Mayco will use the modified accelerated cost recovery system (MACRS) accelerated method (5-year asset) to depreciate the machine and expects to sell the machine at the end of its 6-year operating life for $10,000. The firm expects to be able to reduce networking capital by $15,000 when the machine is installed, but required working capital will return to the original level when the machine is sold after six years. Mayea’s marginal tax rate is 40%, and it uses a 12% cost of capital to evaluate projects of this nature. What is the NPV of the project? What if the machine will be depreciated using straight line depreciation over 6 years what will be the NPV of the project? View less » Oct 10 2015 03:09 AM
