The tax rate is 35 percent assume a 10 annual required rate


You are the CEO of Fidget Spinners Inc. You are considering purchasing a new 3-D printer to produce all of your product. The 3-D printer will cost $480,000. The printer will be depreciated straight-line to $0 over 5 years. After 5 years the Printer is sold for $30,000. Due to purchasing the 3-D printer, you wiil be able to save $145,000 before taxes per year in production costs. The tax rate is 35 percent. Assume a 10% annual required rate of return.

a. What is the NPV of the project?

b. What is the IRR for the project?

c. Do we Accept the project? Why or why not?

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Finance Basics: The tax rate is 35 percent assume a 10 annual required rate
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