Use the Information for the Question(s)below

question 34

Essay

Use the information for the question(s)below.
Kinston Industries is considering investing in a machine that will cost $125,000 and will last for three years.The machine will generate revenues of $120,000 each year and the cost of goods sold will be 50% of sales.At the end of year three the machine will be sold for $15,000.The appropriate cost of capital is 10% and Kinston is in the 35% tax bracket.
-Assume that Kinston's new machine will be depreciated using MACRS according to the following schedule:

What is the NPV of this project?

Understand the process and implications of ending a contract by agreement.

Distinguish between different scenarios that lead to the discharge of contracts, including frustration and performance.

Analyze the remedies available for breach of contract, including specific performance and damages.

Understand the use and impact of fundamental breach concept on contract enforcement.

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Definitions:

Normal

A term often used to describe data following a bell-shaped, symmetrical distribution around a central value, with predictable patterns as far as spread and outliers.

Bootstrap Distribution

A technique in statistics for estimating the distribution of a statistic by resampling with replacement from the original sample.

Normal

In statistics, this describes a distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Resamples

In statistics, resampling is a method that involves drawing repeated samples from the original data samples.