Question Details

(Answered) Finance Management


Follow the instructions carefully for both documents and complete assignments. You can only use internet references if you must use any at all. Document Preview: Week 2 Individual Assignment - Highlighted are the correct answers to each of the problems. Refer to the pdfs for each question and tell how you get to the final answer. Write out the explanation according to the readings in the pdfs. Make sure you write down the step by step scenarios for each question of how you got the answers. Also, any work completed on excel must be embedded within the word file so that if the professor clicks on it he can see all of the calculations. Please follow these instructions carefully as points will be taken off for any little mistake. 2.1. Warszawa Company is interested in buying a machine for $50,000 with uncertain life. The following table shows its expected life and resale value: Expected life Probability Resale value 5 years 5% $5000 6 years 15% $4000 7 years 80% $3000 The machine will save the company $10,000 annually while it is running. Warszawa will depreciate it fully on a straight-line basis in 5 years. The tax rate of Warszawa is 30%, and the proper discount rate in this case is 11%. Should Warszawa buy it? NPV = -5650.79, no? 2.2. Krak?w Company plans to buy a new machine for $40,000, which will save the company $11,000 annually. Krak?w will depreciate the machine on the ACRS with three-year life, the annual depreciation being 25%, 50%, and 25%. The company will use the equipment for 6 years, and then sell it for $5,000. The tax rate of the company is 32% and it will use 9% as the discount rate. Should Krak?w buy the machine? NPV = $6375.50, yes? 2.3. L?dz Incorporated wants to buy a new machine, which costs $300,000. L?dz will depreciate it fully over its useful life of 6 years, on a straight-line basis. It will then sell the machine for $25,000. L?dz has income tax rate of 35% and it uses a discount rate of 11%. Calculate the minimum pre-tax annual earnings generated by this machine to justify its purchase. $79,014.38? 2.4. Wroclaw Corporation wants to buy a machine... Attachments: 508C04.pdf 508C05.pdf Week-2-Discus....docx Week-2-Indivi....docx
More Details:

Finance Management

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Dec 18, 2020

PRICE: $18.50

Solution~00031147683726.zip (25.37 KB)

Buy this answer for only: $18.50

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Dec 18, 2020

EXPERT

Tutor

ANSWER RATING

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 YOUR SET DEADLINE.

Order Now