Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Question
Genoa Company is considering a new investment whose data are shown below. The equipment would be
|
WACC |
14.57% |
|
Net investment in fixed assets (basis) |
$75,000 |
|
Required net operating working capital |
$33,000 |
|
Straight-line depreciation rate |
33.333% |
|
Annual sales revenues |
$81,000 |
|
Annual operating costs (excl. depr.) |
$35,000 |
|
Tax rate |
35.0% |
|
$3,018 |
||
|
$2,974 |
||
|
$3,009 |
||
|
$2,712 |
||
|
$2,823.05 |
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