소개글
Goodweek Tires, Inc. Case에 대한 자료입니다.
목차
1) Net present value
2) Payback period(=number of years to recover initial costs)
3) Discounted payback period
4) Average accounting return
5) Internal rate of return
6) Profitability Index
본문내용
In order for me to answer this question, I think that I should know the future cash flows of Goodweek Tires, Inc. for 4 years. So I made the worksheet for future cash flows of company as below.
Work Sheet 1. Investment
1. The salvage value of equipment in year 4 is $45,576,000.
Market value - tax rate[market value - book value(value depreciated)]
*The market value of equipment amount in year 4 is $51,000,000.
The taxable amount is 13,560,000(=51,000,000-37,440,000).
The aftertax salvage value is 51,000,000 - [(51,000,000-37,440,000)X0.4]= $45,576,000.