. Using net present value, and internal rate of return, decide whether they should accept or reject this project

Best Available Writers

. Using net present value, and internal rate of return, decide whether they should accept or reject this project

YEAR MACRS 3-YEAR
1 33%
2 45%
3 15%
4 7%

Troll Inc is considering replacing an old, relatively inefficient Troll injection-mold machine that was purchased three years ago with a new, more efficient model. The cost of the old machine has $7500 and had an expected MACRS life of three years. If they sell the old machine now they would receive $1000. However, at the end of five years, the old machine is worthless. The cost of the new machine is $12000 and would require an increase in inventory of 1,500. Suppliers would grant the firm an additional 500 in trade credit for the new level of inventory. The expected life of the new machine is three years and will reduce annual labor expenses from 10,000 to 4,000. At the end of the project, the firm will be able to sell the new machine for 3,000 a recoup their investment in working capital. The firm has a marginal tax rate of 40 percent. Troll’s marginal cost of capital is calculation and readability, round your cash flows to the nearest whole dollar. Using net present value, and internal rate of return, decide whether they should accept or reject this project

. Using net present value, and internal rate of return, decide whether they should accept or reject this project

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

. Using net present value, and internal rate of return, decide whether they should accept or reject this project

. Using net present value, and internal rate of return, decide whether they should accept or reject this project

. Using net present value, and internal rate of return, decide whether they should accept or reject this project

. Using net present value, and internal rate of return, decide whether they should accept or reject this project

. Using net present value, and internal rate of return, decide whether they should accept or reject this project

. Using net present value, and internal rate of return, decide whether they should accept or reject this project

Best Available Writers

Looking for writer? — Hire assignment writer!


Get any topic done in as little as 6 hours

Ask your question