You have a chance to make an investment that has $10.000.000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have 1.000.000. scrap value at end of 4th year. You will pay interest payment at the end of 4rd year that is $500.000. If you make this investment now, you will receive $4.500.000 one year from today, $3.000.000, $5.000.000 and S 4.000.000 respectively. The appropriate discount rate for this investment is 14 percent. Tax rate is % 30. Should you make the investment? Why?? Please write the answer in a handwritten format

You have a chance to make an investment that has $10.000.000 landing, 1.500.000 machine, outsourcing 500.000 and finance cost 1.000.000. Machines have 1.000.000. scrap value at end of 4th year. You will pay interest payment at the end of 4rd year that is $500.000. If you make this investment now, you will receive $4.500.000 one year from today, $3.000.000, $5.000.000 and S 4.000.000 respectively. The appropriate discount rate for this investment is 14 percent. Tax rate is % 30. Should you make the investment? Why?? Please write the answer in a handwritten format

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...

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