Shanghai Jiao Tong University Antai College of Economics and Management Case study: gravid budget for Pressco. IncMarch 2010 Abstract Ms. Rogers, a marketing re convey upative for Pressco, Inc., sp ars no driving to persuade its probable guests like Paperco to foretoken a covering fire contracts of purchasing impudently mechanic drying equipment. In view of the doubt about whether a rumored in the altogether tax legislation entrust come into effect or not, company like Paperco must(prenominal) examine the net present note value of the old installation and new purchasing (with ITC earned or not) respectively in order to decide if its worth investing. In this paper, net present value of new facility low both subsisting and rumored tax legislation are calculated, as good as the expected cost savings for Paperco. On this basis, we are difficult to make some suggestions on the standpoint of Pressco and its counterparts with the care of predisposition analysis method, and finally our takeaways. Keywords: Cash Flow, final familiarize Value, Investment Tax Credit(ITC) Investment background Parties related Presso. Inc: a company in the line of robotic drying equipment Paperco: a potential customer of Pressco. Inc. Jane Rogers: a marketing representative for Pressco In the year 1984, Jane Rogers used to persuade Papercos management to buy this new mechanical drying equipment, but it turned out to be unsuccessful because the customer viewed the proposed investment as moderately inviting but easily postponable at little cost to Paperco. In the year 1985, Jane Rogers decided to persuade Papercos management again with her well-prepared financial presentation, which was designed to help crocked the sale of the new equipment. In her presentation, she gave the expected price of the new equipment of $2.9 million, and als o pointed out that the cost saving that Pape! rco would realize from the proposed new... If you regard to get a full essay, order it on our website: OrderCustomPaper.com
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