Answer to Question #105467 in Finance for Ray

Question #105467
1-Company XYZ plans to acquire a new automated welding system to replace the existing manual system. This new system will initially cost $ 600,000 and will be amortized at an ACC rate of 30%. The expected life of the system is 4 years, and the company estimates it will be worth $ 100,000 at the end of this period. Since the new automated system will be more efficient than the old one, the company can expect to achieve a cost savings of $ 180,000 per year before tax during the period. If the ERR is 15% and the tax rate is 44%, what is the net present value of the new system?
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Expert's answer
2020-03-24T09:35:29-0400


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Comments

ray
21.03.20, 14:04

incorrect

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