公司理财教材新第十节.pptVIP

Replacement Problem – Cash Flow From Assets Year 0 1 2 3 4 5 OCF 58400 58400 58400 58400 58400 NCS -89,000 -10,000 ? In NWC 0 0 CFFA -89,000 58400 58400 58400 58400 48400 10-* Example: Cost Cutting Your company is considering a new computer system that will initially cost $1 million. It will save $300,000 per year in inventory and receivables management costs. The system is expected to last for five years and will be depreciated using 3-year MACRS. The system is expected to have a salvage value of $50,000 at the end of year 5. There is no impact on net working capital. The marginal tax rate i