Calculate the value of NDPFC if GNPMP is $2000 , depreciation is $500 , NFIA is $600 and NIT is $300

One year ago, your company purchased a machine used in manufacturing for $105,000. You have learned that a new machine is available that offers many advantages and you can purchase it for $160,000 today. It will be depreciated on a straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin (revenues minus operating expenses other than depreciation) of $60,000 per year for the next 10 years. The current machine is expected to produce a gross margin of $21,000 per year. The current machine is being depreciated on a straight-line basis over a useful life of 11 years, and has no salvage value, so depreciation expense for the current machine is $9,545 per year. The market value today of the current machine is $65,000. Your company's tax rate is 40%, and the opportunity cost of capital for this type of equipment is 10%. Should your company replace its year-old machine? The NPV of replacing the year-old machine is $ (Round to the…

Borsberry Medical has a gross income of $6.7 million for the year. Depreciation and operating expenses total $5.5 million. The combined state and local tax rate is 7.6%. Borsberry’s president hopes to have a total of $2 million left after taxes. What reduction in operating expenses (OE) is necessary to realize this goal if the effective tax rate and depreciation are constant?

Calculate GNPFC if the value of depreciation is $300 million and the value of NNPFC is $650 million