This paper circulates around the core theme of The President of Real Time Inc. has asked you to evaluate the proposed aquisition 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.
Finance 1 answer below » The President of Real Time Inc. has asked you to evaluate the proposed aquisition of a new computer. The computer’s price is $40,000, and it falls in MACRS
3-year class. The applicable depreciation rates are 33%, 45%, 15%, and 7%. Purchase of the computer would require an increase in accounts payable of $2,000.
The computer would have an EBT and depreciation of $15,000. The computer’s expected use is 3 years and then sold for $25,000. The firms marginal tax rate is
40%, and the project’s cost of capital is 14%. What is the NPV? What is the total value of the trminal year View complete question » The President of Real Time Inc. has asked you to evaluate the proposed aquisition of a new computer. The computer’s price is $40,000, and it falls in MACRS
3-year class. The applicable depreciation rates are 33%, 45%, 15%, and 7%. Purchase of the computer would require an increase in accounts payable of $2,000.
The computer would have an EBT and depreciation of $15,000. The computer’s expected use is 3 years and then sold for $25,000. The firms marginal tax rate is
40%, and the project’s cost of capital is 14%. What is the NPV? What is the total value of the trminal year non-operating cash flows at the end of year 3? Waht is the net investment requited at t=0? What is the operating cash flow in year 2? View less » Jan 17 2014 07:05 PM
