REAL DOG MANUFACTURING COMPANY HAS A NEW DOG FOOD CANNING MACHINE WHICH COSTS $500,000.  SHIPPING AND  INSTALLATION AND TRAINING WILL ADD ANOTHER $100,000.  THE MACHINE HAS A 8 YEAR LIFE WITH A $0 SALVAGE VALUE. ASSUME INCREMENTAL PROFIT AFTER TAXES OF $50,000 PER YEAR AND IF THE COST OF CAPITAL IS 12%, CALCULATE PAYBACK, IROR AND NET PRESENT VALUE. ASSUME THAT THE COST OF INSTALLATION AND TRAINING IS WRITTEN OFF OVER THE LIFE OF THE EQUIPMENT. 

Shipping and installment

Total initial investment 500000

100000

600000 Depreciation per year = 75000 Calculating the cash flows

Profit after taxes

Add: Depreciation

Net cash flow 50000

75000...

About this Question

Answered

Approved

Sep 13, 2020

Tutor

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

• As a reference for in-depth understanding of the subject.
• As a source of ideas / reasoning for your own research (if properly referenced)
• For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.