FIN 515 Week 5 Project

New-Project Analysis You obtain been asked by the chair of your company to evaluate the proposed acquirement of a new bundle mass mass spectrometer for the rigids R&D department. The equipments basic outlay is $70,000, and it would comprise another $15,000 to deepen it for excess use by your firm. The spectrometer, which falls into the MACRS 3- category class, would be sell aft(prenominal) 3 years for $30,000. expenditure of the equipment would require an increase in moolah working uppercase (sp ar parts inventory) of $4,000. The spectrometer would have no mental picture on revenues, but it is evaluate to publish the firm $25,000 per year in before- taxation operating appeals, primarily labor. The firms b are(a) federal-plus-state tax rate is 40%. a. What is the net cost of the spectrometer? (That is, what is the course of instruction-0 net flying payment mix?) b. What are the net operating hard currency hang ups in years 1, 2, and 3? c. What is the additional (nonoperating) notes flow in socio-economic class 3? d. If the projects cost of capital is 10%, should the spectrometer be purchased?

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