The writer is very fast, professional and responded to the review request fast also. Thank you.
Myer Inc. would like to set up a new plant. Currently, Myer has an option to buy an exsiting building at a cost of $24,000. Necessary equipment for the plant will cost $16,000, including installation costs. Depreciation of the equipment and of the building is as follows: Year 1=$3512, Year 2= $5744, Year 3=$3664, and Year 4= $2544. The project would require an initial investment of $12,000 of net working capital and will be made at the time of the purchase of the building and equipment. The working capital will be fully recovered at end of year 4. The project’s estimated economic life is four years. At the end of that time, the building is expected to have a market value of $15,000 and a book value of $21,816, whereas the equipment is expected to have a market value of $4000 and a book value of $2720. Annual sales will be $80,000. The production department has estimated that variable manufacturing costs will be 60% of sales and that fixed overhead costs, excluding depreciation, will be $10,000 a year. Myer’s marginal tax is 30%; its cost of capital is 12% and for capital budgeting purposes, the company’s policy is to assume that operating cashflows occur at the end of each year. The plant will begin operations immediately after the investment is made, and the first operating cash flows will occur exactly one year later.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more