Explore our Solution Library

Home  »  Solution Library  »  Columbia Southern University Operations And Supply Chain Management Assignment Help - Finance NPV   »  Number of Views - 1029

Columbia Southern University Operations And Supply Chain Management Assignment Help - Finance NPV

Question - Ilana Industries, Inc., needs a new lathe. It can buy a new high-speed lathe for $1.8 million. The lathe will cost $53,000 per year to run, but will save the firm $183,000 in labor costs, and will be useful for 10 years. Suppose that for tax purposes, the lathe will be depreciated on a straight-line basis over its 10-year life to a salvage value of $500,000. The actual market value of the lathe at that time also will be $500,000. The discount rate is 12%, and the corporate tax rate is 30%. W hat is the NPV of buying the new lathe? (Negative amount should be indicated by a minus sign. Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV $

Solution Preview - No Solution Preview Available

Original Question Documents

Email your assignment/project

enquiry@allassignmenthelp.com

Want to place an
order on the call?
It's free