Corporate FInace Assignment/ Professional Essay Writers

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer’s base price is $1,000,000, and it would cost another $21,500 to install it. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $503,000. The MACRS rates for the first three years are 0.3333, 0.4445, and 0.1481. The machine would require an increase in networking capital (inventory) of $12,500. The sprayer would not change revenues, but it is expected to save the firm $368,000 per year in before-tax operating costs, mainly labor. Campbell’s marginal tax rate is 25%. (Ignore the half-year convention for the straight-line method.) Cash outflows, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest dollar.

Don't use plagiarized sources. Get Your Assignment on
Corporate FInace Assignment/ Professional Essay Writers
Just from $13/Page
Order Now

Gibbs' reflective cycle in nursing

1. What is the Year-0 net cash flow?


2. What are the net operating cash flows in Years 1, 2, and 3?

Year 1: $
Year 2: $
Year 3: $

3. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital)?


4. If the project’s cost of capital is 12%, what is the NPV of the project?


Should the machine be purchased?  Get Finance Help Today

Recent Blog Posts

No recent articles to show.

Other Blog Posts

What are the key elements of an essay

You may clearly understand what an essay is and have had the experience of writing a number. However, it is […]

Feb 25th, 2022

How to write a research paper fast

The day inevitably comes; you need to submit your assignment. You have been procrastinating on writing your paper until the […]

Feb 24th, 2022

220+ best humanities research paper topics

Choosing a paper topic can be a daunting task for any assignment. A student may face agony trying to come […]

Feb 24th, 2022

How to write a media analysis essay

The media is an integral part of modern society. Think of what would happen to the world if there were […]

Feb 23rd, 2022

Great tricks on how to write a hypothesis in 2022

A hypothesis is a statement that can be proven by scientific research. It proves the theory of action and reaction, […]

Feb 22nd, 2022

How to get better at math

Math is not difficult. However, it is complex and tough compared to other subjects and requires a little bit more […]

Feb 22nd, 2022