Homework Answers
Net Revenue per year = 5000 - 1000 = 4000
Revenue after tax = 4000 - 0.55 * 4000 = 0.45 * 4000 = 2250
Salvage value after tax = 800 - 0.55 * 800 = 0.45 * 800 = 360
NPV after tax = -20000 + 2250 * (P/A, 9%,10) + 360 * (P/F, 9%,10)
= -20000 + 2250 * 6.417658 + 360 * 0.422411
= -5408.20
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#12
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#12
Peng Company is considering an investment expected to generate
an average net income after taxes of $2,900 for three years. The
investment costs $51,600 and has an estimated $10,800 salvage
value.
Assume Peng requires a 10% return on its investments. Compute
the net present value of this investment. Assume the company uses
straight-line depreciation
Select Chart Amount x PV Factor = Present Value Cash Flow Annual cash flow Residual value Net present value
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kindly help with question 12-24 step by step by hand.
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