University Inn is planning to replace its washing machine, a major capital expenditure for this year. General Manager, John Adams, is reviewing the follow information for decision making.
The purchase price of the new washing machine at time 0 = $10,000
Life of the new machine is 10 years (salvage value at the end of year 10 = $0)
The new machine is expected to make $25,000 in laundry revenues each year.
The expense for operating and maintaining laundry services is $23,000 each year.
Mr. Adams knows the required rate of return for similar capital investment is 24% (KE).
University Inn will finance the purchase by using 50/50 mix of debt and equity.
The cost of debt (KD) to the firm is 10%.
University Inn’s marginal tax rate is 40%.
Mr. Adams needs your assistance to determine the following for his purchase decision:
a. weighted average cost of capital (KA)
b. operating cash flow for 10 years (OCFt)
c. Net Present Value (NPV) using Present Value Annuity Factor (PVAn=10,k=12)
Should Mr. Adams make this purchase? Why?
Get Finance homework help today
We aim at 100% customer satisfaction. As such, we never compromise on the quality of our assignment services. Our homework helpers craft each paper carefully to match the requirements on the instruction form.
We receive many applications from writers around the world daily. Nevertheless, we only choose the cream of the crop to tackle your “help with homework” requests. Hence, our homework helpers are highly-qualified individuals who maintain our quality policy.
We maintain a fair pricing policy for all our homework help services. Our pricing system generates quotations based on the requirements of each paper.
At My Homework Writers, we guarantee all students swift delivery of their assignments. We understand that time is an essential factor in the academic world. We, therefore, ensure that all assignments are delivered on or before the agreed deadline.
We maintain a zero-plagiarism policy in all our essay papers. Our assignment writers stick to the students’ instructions to deliver plagiarism-free papers. We are also keen to avoid any chance of similarities with previously written papers.
We understand that you might run into trouble once in a while when working with our system. In the event that you do run into trouble, please get in touch with our support agents and they will immediately provide you with assistance.
Feel free to contact us via the Chat window or email: firstname.lastname@example.org.
Follow these simple steps to get your homework done
Fill in the order form and provide all details of your assignment.
Choose the payment system that suits you most.
You will be able to track the progress of your paper from our system.
Once your paper is ready, we will email it to you.
Myhomeworkwriters website holds a reputation for providing high-quality assignment writing services. You only need to give us all the requirements for your “do my homework” order, and our homework paper writers will give you the best results.
We have highly qualified essay writers to assist you whenever you place in "help with my homework" order. Our essay writing service is designed to help students get good grades.
Our admission essay writing help will assist you to secure a position at your desired learning institution. We will help you craft a top-notch personal statement paper. Our writers who know how to write a college admission essay will help you get the college admission you are longing for.
Our team of professional editors will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper possesses quality and originality.
My homeworkwriters harbors specialists who can handle your technical papers order. Our “write my homework” services cover all academic areas you can think of. The simplicity or complexity of the paper does not affect the quality of assignment writing services.