Aria Acoustics, Inc. (AAI), projects
unit sales for a new seven-octave voice emulation implant as
Production of the implants will
require $1,700,000 in net working capital to start and additional
net working capital investments each year equal to 10 percent of
the projected sales increase for the following year. Total fixed
costs are $1,600,000 per year, variable production costs are $315
per unit, and the units are priced at $430 each. The equipment
needed to begin production has an installed cost of $22,000,000.
Because the implants are intended for professional singers, this
equipment is considered industrial machinery and thus qualifies as
seven-year MACRS property. In five years, this equipment can be
sold for about 15 percent of its acquisition cost. AAI is in the 30
percent marginal tax bracket and has a required return on all its
projects of 17 percent. Table 8.3.
What is the NPV of the project?
(Do not round intermediate calculations and round your
final answer to 2 decimal places (e.g., 32.16).)
What is the IRR? (Do not
round intermediate calculations. Enter your answer as a percent
rounded to 2 decimal places (e.g., 32.16).)
This question was answered on: Dec 08, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Dec 08, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.