Cardinal Co is evaluating a new product opportunity. To launch the product requires the purchase of a new machine for $50,000. This machine will be used for 4 years, after which the machine will be sold for a salvage value of $10,000. Launch of the new product will also require a $1,200 increase in working capital – an increase which will be recovered at the end of 4 years. Over this 4-year product life, Cardinal Co estimates incremental annual sales of $36,000 and increased annual cash-costs of $8,500. Based on Cardinal Co’s discount rate of 12.5% and a marginal tax rate of 21% please answer the following: a) What is the total initial investment for this project?

b) What is the project’s incremental after-tax cash flow in year 1?

c) What is the project’s incremental after-tax cash flow in year 4?

d) If the calculated IRR for this project is 34.7%, should Cardinal accept this project? Why – please explain your answer.

points are handed out whenever you post answers.

brainliest answers are handed out by the person asking the question, so whether your answer is picked depends entirely on whether the asker bothers to pick

if you're asking about your rank, it depends on having a certain number of points and a certain number of brainliest answers. for example, at the time of this writing, i have 44338 points out of 15000 needed for the next (nearly triple the requirement! ) but i only have 24 out of 50 required brainliest answers. this number decays, meaning after a certain amount of time (i think about a month), the total number of brainliest answers you've earned doesn't count toward this total. (i've been stuck at the same rank for a long

the lesson to learn here is that you shouldn't worry about points or rank. chances are, no matter how good an answer you may provide, your efforts will go mostly unnoticed unless you focus on the newest/most active questions that get posted.

b). 4320 have a nice day

you can use a^2+ b^2=c^2