Homework Answers
Depreciation Value on 4 th year=Initial Cost*4th year depreciation rate=90000*7.41%= $6669
Operating Profit= Sales-Cost=52500-23000=29500
Taxable income= Operating profit-Depreciation=29500-6669=$22831
Tax= taxable income* tax rate=22831*35%=$7990.85
Cash flow after tax= taxable income-tax+depreciation=22831-7990.85+6669=$21509.15
Hence, project's year 4 cash flow is $21509.15
Add Answer to:
Please answer question 12 and SHOW ALL WORK !
12) (10 pts) TallyT's Products is considering...
Whitestone Products is considering a new project whose data are shown below. The required equipment has...
Whitestone Products is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated rates for such property are 33.33%, 44.45%, 14.81%, and 7.41% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's Year 4 cash flow? Equipment cost (depreciable basis) $70,000 Sales revenues, each year $42,500 Operating costs (excl. deprec.) $25,000 Tax rate...
34. Borin Incorporated is considering a new project whose data are shown below. The required equipment...
34. Borin Incorporated is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's Year 4 cash flow? $70,000 $33,500 $25,000 35.0% Equipment cost (depreciable basis) Sales revenues, each year Operating costs (excl. depr.)...
Fox Films is considering some new equipment whose data are shown below. The equipment has a...
Fox Films is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be depreciated by the MACRS method using the following rates (.3333,.4445,.1481,.0741). The equipment would have a pre-tax salvage value at the end of Year 3 shown below when the project would be closed down. Also, some new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is...
Manchester Films Manchester Films is considering some new equipment whose data are shown below. The equipment...
Manchester Films Manchester Films is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be fully depreciated by the straight-line method over 3 years, but it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, some new working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs...
finance
Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation ratesfor such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expectedlife. What is the Year 1 cash flow?Equipment cost (depreciable basis) $48,000Sales revenues, each year $60,000Operating costs (excl. depr.) $25,000Tax rate 35.0%
Garden-Grow Products is considering a new investment whose data are shown below. The equipment would be...
Garden-Grow Products is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require some additional working capital that would be recovered at the end of the projects to Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV? (Hint: Cash flows are constant in Years 1 to 3) WACC...
Manchester Films Manchester Films is considering some new equipment whose data are shown below. The equipment...
Manchester Films Manchester Films is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be fully depreciated by the straight-line method over 3 years, but it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, some new working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs...
In the following multiple-choice questions 1. Redstone Services is considering a nevw equipment for $90,000. The...
In the following multiple-choice questions 1. Redstone Services is considering a nevw equipment for $90,000. The required equipment costs of $8,000 and has a 3 year tax life. The 44 45%, 14.81%, and 7.41% for years 1 through 4 3 depreciation 33.33%, accelerated rates for such property are 3 MACRS). What is the project's ear (based on M which would be used in cash flow estimation? a. $10,115 b. $14,514 c. $23,333 d. $13,329
Garden-Grow Products is considering a new investment whose data are shown below. The equipment would be...
Garden-Grow Products is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require some additional working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV? (Hint: Cash flows are constant in Years 1 to 3.) Project...
Clemson Software is considering a new project whose data are shown below. The required equipment has...
Clemson Software is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. Equipment cost (depreciable...
34. Borin Incorporated is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's Year 4 cash flow? $70,000 $33,500 $25,000 35.0% Equipment cost (depreciable basis) Sales revenues, each year Operating costs (excl. depr.)...
Manchester Films Manchester Films is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be fully depreciated by the straight-line method over 3 years, but it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, some new working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs...
Garden-Grow Products is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require some additional working capital that would be recovered at the end of the projects to Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV? (Hint: Cash flows are constant in Years 1 to 3) WACC...
Manchester Films Manchester Films is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be fully depreciated by the straight-line method over 3 years, but it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, some new working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs...
In the following multiple-choice questions 1. Redstone Services is considering a nevw equipment for $90,000. The required equipment costs of $8,000 and has a 3 year tax life. The 44 45%, 14.81%, and 7.41% for years 1 through 4 3 depreciation 33.33%, accelerated rates for such property are 3 MACRS). What is the project's ear (based on M which would be used in cash flow estimation? a. $10,115 b. $14,514 c. $23,333 d. $13,329
Most questions answered within 3 hours.
-
Give the relative rates for the following with a neighbor at your
desk
PH3(g) to P4(g)...
asked 12 minutes ago -
Suppose Acap Corporation will pay a dividend of $2.87 per share
at the end of this...
asked 35 minutes ago -
Scientists make earthquake forecasts using data from:
A.
geodesy
B.
seismology
C.
geology
D.
paleoseismology
E....
asked 38 minutes ago -
Employee training can
be defined as planned organizational efforts to help employees
learn job-related knowledge, skills,...
asked 1 hour ago -
Which for loop is implemented correctly in Java?
Group of answer choices
for (i = 0...
asked 2 hours ago -
Required information
[The following information applies to the questions
displayed below.]
In 2019, Alliant Corporation acquired...
asked 2 hours ago -
How much must I invest today if I want to withdraw 1/3 of my
original investment...
asked 4 hours ago -
What is meant by a “term premium”?
What can explain such a premium? Is it a...
asked 6 hours ago -
23. Which molecule has only covalent bonds? A. CO2 B. Al2O3 C.
Mg3N2
24. The octet...
asked 6 hours ago -
the
total pressure for a mixture of N2O4 and NO2 is 2.20 atm. If Kp=
7.10...
asked 6 hours ago -
Delaware Corp. prepared a master budget that included $22,385
for direct materials, $28,600 for direct labor,...
asked 6 hours ago -
For pesticide HCB (hexachlorobenzene), its logarithmic partition
coefficient log Kow is 5.6. What would be the...
asked 6 hours ago