JJ Enterprises is considering the purchase of a new machine that will produce thumb drives. The new

Asked by bizgrad
Dated: 9th Feb'18 04:05 PM
Bounty offered: $5.00

6.

JJ Enterprises is considering the purchase of a new machine that will produce thumb drives. The new machine will require an initial investment of $800,000 and has an economic life of five years and will be fully depreciated by the straight line method. The machine will produce 150,000 thumb drives per year with each costing $0.10 to make. Each will be sold at $2.00. Assume JJ Enterprises uses a discount rate of 14 percent and has a tax rate of 34 percent. What is the NPV of the project and should JJ Enterprises make the purchase.

You will upload an Excel spreadsheet that shows all of your work and the solution.

JJ Enterprises is considering the purchase of a new machine that will produce thumb drives. The new
Answered by bizgrad
Expert Rating: 2385 Ratings
Dated: 9th Feb'18 04:05 PM
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finance-question-6.xlsx (8.28 KB)
Preview of finance-question-6.xlsx
=     3   - 800,000     -