I need the answers to these:
Summer Tyme, Inc., is considering a new 4year expansion project that requires an initial fixed asset investment of $3.024 million. The fixed asset will be depreciated straightline to zero over its 4year tax life, after which time it will be worthless. The project is estimated to generate $2,688,000 in annual sales, with costs of $1,075,200. If the tax rate is 34 percent and the required return on the project is 14 percent, the NPV for this project is $

Summer Tyme, Inc., is considering a new 3year expansion project that requires an initial fixed asset investment of $3.132 million. The fixed asset will be depreciated straightline to zero over its 3year tax life, after which time it will have a market value of $243,600. The project requires an initial investment in net working capital of $348,000. The project is estimated to generate $2,784,000 in annual sales, with costs of $1,113,600. The tax rate is 35 percent and the required return on the project is 14 percent. The NPV for this project is $
Dog Up! Franks is looking at a new sausage system with an installed cost of $546,000. This cost will be depreciated straightline to zero over the project’s 8year life, at the end of which the sausage system can be scrapped for $84,000. The sausage system will save the firm $168,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $39,200. If the tax rate is 32 percent and the discount rate is 15 percent, the NPV of this project is $
Your firm is contemplating the purchase of a new $1,260,000 computerbased order entry system. The system will be depreciated straightline to zero over its 5year life. It will be worth $112,500 at the end of that time. You will save $495,000 before taxes per year in order processing costs and you will be able to reduce working capital by $103,430 (this is a onetime reduction). If the tax rate is 33 percent, the IRR for this project is
