Input area: 1 2 SA A A $ (26,00,000) $ (35,00,000.00) $ (1,95,000) $ $ 6 Machine A OCF NCS NWC CFFA Machine A: Cost Vari
Posted: Sun Apr 17, 2022 6:28 pm
- Input Area 1 2 Sa A A 26 00 000 35 00 000 00 1 95 000 6 Machine A Ocf Ncs Nwc Cffa Machine A Cost Vari 1 (106.34 KiB) Viewed 30 times
Capital (NWC) for Machine A and Machine B.
Input area: 1 2 SA A A $ (26,00,000) $ (35,00,000.00) $ (1,95,000) $ $ 6 Machine A OCF NCS NWC CFFA Machine A: Cost Variable costs Fixed costs Life Machine B: Cost Variable costs Fixed costs Life Both: Sales Tax rate Discount rate *Depreciation staight-line $ $ $ $ (52,00,000) (30,00,000.00) (2,30,000) 9 $ (1,00,00,000) 35% 10% 1 2 2 Machine B OCF NCS NWC CFFA Output area: $ $ $ Machine A (35,00,000) (1,95,000) (4,33,333) (41,28,333) 14,44,917 (26,83,417) 4,33,333 (22,50,084) Variable costs based on sales Fixed costs Depreciation EBT Tax Net income + Dep OCF $ Machine B (30,00,000) (2,30,000) (5,77,778) (38,07,778) 13,32,722 (24,75,056) 5,77,778 (18,97,278) shield from taxes that costs are providing you $ $ $ S NPV EAC $ (1,23,99,699.39) ($28,47,062.95) $ (1,61,26,459.39) ($28,00,208.96) should be chosen since it has the Machine B HIGHER EAC.