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Q1: The Steel Industrial Company (SIC) is considering building a new iron processing plant. The following cash outlays a
Posted: Wed Mar 16, 2022 9:13 am
by answerhappygod
- Q1 The Steel Industrial Company Sic Is Considering Building A New Iron Processing Plant The Following Cash Outlays A 1 (42.09 KiB) Viewed 58 times
Q1: The Steel Industrial
Company (SIC) is considering building a new iron processing plant. The following cash outlays are required to complete the plant: Year 0 Cash Outlay $4,000,000 2,000,000 500,000 1 2 SIC's cost of capital is 12%, and its marginal tax rate is 40%. Calculate the plant's net investment (NINV). Q2: By how much would the NPV for the project increase if depreciation method is switched from MACRS to straight line-depreciation?