Project analysis
Cost of machine is $680,000, 4 year life & no salvage value. Straight line depreciation.
Sales are 160 units per year, price is $19,000.
Variable cost is $14,000 per unit and fixed cost is $150,000 per year.
The required return is 15%
tax rate is 35%
Show cash flow and NPV for each year and total four years
Cost of machine is $680,000, 4 year life & no salvage value. Straight line depreciation.
Sales are 160 units per year, price is $19,000.
Variable cost is $14,000 per unit and fixed cost is $150,000 per year.
The required return is 15%
tax rate is 35%
Show cash flow and NPV for each year and total four years