An company uses a technology which it purchased for $15 million. Operating costs are $2 million per year, and revenues of $7.3 million. The service life of the technology is 5 years and salvage value is $2 million. The corporate tax rate is 25%. a) Calculate the after-tax IRR using the approximate approach. b) If the after-tax MARR is 15%, is this a good investment? c) Should you do a more precise IRR calculation before finalizing your decision? Briefly explain why or why not.

A corporation expects to receive $32,000 each year for 15 years from the sale of a product. There will be an initial investment of $150,000. Manufacturing and sales expenses will be $8067 per year. Assume straight line depreciation, a 15-year useful life and no salvage value. Use a 46% income tax rate. What is the before andafter-tax rate of return? No excel Please and thank you

The market value of the property that you own is $15 million. The gross annual rental income for this property is $600,000. The tax rate is 28% . The set up costs (renovations ect) in order to use the building and land for your own business operations are $7,000,000. The annual revenue if you were to use the building forr your own business operations with low demand would be $5 million and have a 30% chance of occuring. The annual revenue if you were to use the building for your own business operations with medium demand would be $9 million and have a 40% chance of occuring. he annual revenue if you were to use the building for your own business operations with high demand would be $13 million. The variable costs (% of revenue) is 65 %. The fixed costs are $2.5 million. The costs of capital is 10% and the risk free rate is 3%. he initial cost for setting up the expansion of business can be fully depreciated over 10 years using the straight-line method. The value of land will be…

A corporation is considering purchasing a machine that will save $150,000 per year before taxes. The cost of operating the machine (including maintenance) is $30,000 per year. The machine will be needed for five years, after which it will have a zero salvage value. MACRS depreciation will be used, assuming a three-year class life. The marginal income tax rate is 25%. If the firm wants 15% return on investment after taxes, how much can it afford to pay for this machine? Click the icon to view the MACRS depreciation schedules Click the icon to view the interest factors for discrete compounding when /- 15% per year. If the firm wants 15% return on investment after taxes, it can afford to pay thousand for this machine. (Round to one decimal place.)