write my assignment 4725

Dennis corp has a sales price = $34/unit. The VC percentage = 60%. The current after-tax net income = $159,936. What is the margin of safety in units? (Tax rate = 30%)

Units__________?

Monster corp is considering buying a new machine for $450,000. The machine has an 8 year life (S/L) and zero salvage value. The machine will allow monster to save $80,000/year in material and labor. Monster will sell an old machine for $25,000. The sale will take place on the same day the new machine is bought. The old machine has a NBV= 14,000 (2 years remain). The new machine will require an overhaul in year 4 = $ 17,000. Monster has a 30% tax rate. What is the NPV of this investment using a 6% discount rate?

NPV_______?

COST________?

Annuity________?