5-7. Your firm is considering investing in a project to redose sosts by ( 556.000 ) annually. The equipment costs ( $ 183.000 ), had a 4-year tife (will be depreciated as a 3-year MACRS asset: 33 % for the Ist year. ( 45 % ) for the 2 nd year, and ( 15 % ) for the 3rd year), requires ( $ 8,000 ) initial cost in net working capital, a

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5-7. Your firm is considering investing in a project to redose sosts by  ( 556.000  ) annually. The equipment costs  (  $ 183.000  ), had a 4-year tife (will be depreciated as a 3-year MACRS asset: 33 % for the Ist year.  ( 45  %  ) for the 2 nd year, and  ( 15  %  ) for the 3rd year), requires  (  $ 8,000  ) initial cost in net working capital, and has a before-tax salvage value of  (  $ 23,000  ). The discotint nate is 1006 . Tax rate is  ( 21  % 6  ). 5. What's the OCF in year 1 ? 6. What's the Depreciation in year 2? 7. What's the NPV? Accept or Reject?

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(Solved): 5-7. Your firm is considering investing in a project to redose sosts by \( 556.000 \) annually. The ...

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