At the End of 2010,Bezdek Corporation Is Planning to Buy

question 78

Essay

At the end of 2010,Bezdek Corporation is planning to buy a new machine for $70,000 The new machine has a useful life of 7 years and is expected to have a salvage value of $5,000.The pretax cash flow and the depreciation for tax purposes are described below.Bezdek's tax rate is 30 percent and its cost of capital is 15 percent.
Required:
(A.)Calculate the net present value for the new machine.
(B.)Should Bezdek but the new machine?

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Definitions:

Temperament Stability

The degree to which a person's temperament, including traits like mood and emotional reactivity, remains consistent over time.

Inhibited And Shy

Describes a personality trait where individuals show restraint in action or expression and often feel uncomfortable in social situations.

Personality Change

Alterations in an individual's character or behavior patterns, often due to developmental processes, experiences, or psychological interventions.

Adopted Children

Children who have been legally taken and raised by parents who are not their biological parents.