x is evaluating a project which costs 1.500.000, customs + duties are 10% of purchase...
60.1K
Verified Solution
Link Copied!
Question
Accounting
X is evaluating a project which costs 1.500.000, customs + duties are 10% of purchase price, installation requires 25.000. Life of the project machinery is 7 years with 0 salvage value. Expected sales are 1.750.000 annually, CGS=60% of sales, tax rate is 22% Firm collects its receivables in 45 days. Inventory turnover is 5 times, accounts payable will be 75.000 on the average. If r=10% should the investment be made? Use npv for decision making. 1 year = 360 days
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
