Rymer, inc. is considering a new assembler, which costs $180,000 installed, and has - 3428

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  • Posted on: Fri 23 Mar, 2012
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Request Description

Rymer, inc. is considering a new assembler, which costs $180,000 installed, and has a depreciable life of 5 years. The expected annual after-tax cash flows for the assembler are $60,000 in each of the 5 years and nothing thereafter. Calculate the net present value (NPV) of the assembler if the required rate of return is 14%. Round to the nearest ten dollars.

a. $25,200

b. $25,980

c. $51,960

d. $120,000 

Solution Description

Rymer, inc. is considering a new assembler, which costs $180,000 installed, and has a depreci