What is the additional notes flow


New-Project Analysis You obtain been asked by the chair of your company to evaluate the proposed acquirement of a new bundle mass mass spectrometer for the rigids R&D department. The equipments basic outlay is $70,000, and it would comprise another $15,000 to deepen it for excess use by your firm. The spectrometer, which falls into the MACRS 3- category class, would be sell aft 3 years for $30,000. expenditure of the equipment would require an increase in moolah working uppercase of $4,000. The spectrometer would have no mental picture on revenues, but it is evaluate to publish the firm $25,000 per year in before- taxation operating appeals, primarily labor. The firms b are federal-plus-state tax rate is 40%. a. What is the net cost of the spectrometer?  b. What are the net operating hard currency hang ups in years 1, 2, and 3? c. What is the additional notes flow in socio-economic class 3? d. If the projects cost of capital is 10%, should the spectrometer be purchased?

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Finance Basics: What is the additional notes flow
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