Nucor
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Title: Nucor

Essay Details:

Subject: Business
Author: Nancy M
Date: December 18, 2014
Level: University
Grade: A
Length: 2 / 597

Essay text:

The amount of these savings will grow at a rate of 12 per cent per year for each of the following three years. The old equipment has a remaining life of four years. It is being depreciated by the straight line method. 33.3 per cent of the original book value of the new equipment will be depreciated in the first year, 39.9 per cent will be depreciated in the second year, 14.8 per cent will be depreciated in the third year, and 12.0 per cent will be depreciated in the final year. The salvage value of both the old equipment and the new equipment at the end of four years is 0. In addition, replacement of the old equipment with the new equipment requires an immediate increase in net working capital of $5 million, which will not be recovered until the end of the four year investment...

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