A project has an initial requirement of $192212 for new equipment and $8681 for net working...
A project has an initial requirement of $192212 for new equipment and $8681 for net working capital. The installation costs are expected to be $19053. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $126130. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $96063 and the cost of capital is 6% What is the project's NPV if the tax rate is 34%? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
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A project has an initial requirement of $192212 for new
equipment and $8681 for net working...
A project has an initial requirement of $210944 for new equipment and $9567 for net working...
A project has an initial requirement of $210944 for new equipment and $9567 for net working capital. The installation costs to get the new equipment in working condition are 8125. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $100516. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $95257 and the...
A 5-yr project has an initial requirement of $142495 for new equipment and $8859 for net...
A 5-yr project has an initial requirement of $142495 for new equipment and $8859 for net working capital. The installation cost is $14729. The fixed assets will be depreciated to a zero book value over 5 years and have an estimated salvage value of $27974. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $56124. The cost of capital is 10% and the tax rate is 28%. What...
1) A project has an initial requirement of $ 260,000 for fixed assets and $16,500 for...
1) A project has an initial requirement of $ 260,000 for fixed assets and $16,500 for net working capital. The fixed assets will be depreciated to a zero-book value over the four-year life of the project and have an estimated salvage value of $50,000. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $82,500 and the discount rate is 12 percent. What is the project's net present value...
15. Florida Enterprises, Inc. is considering a new project whose data are shown below. The equipment that will be us...
15. Florida Enterprises, Inc. is considering a new project whose data are shown below. The equipment that will be used has a 3-year class life and will be depreciated by the MACRS depreciation system. Revenues and Cash operating costs are expected to be constant over the project's 10-year life. What is the Year 1 after-tax net operating cash flow? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if...
1. Frye Foods is considering a project that has the following cash flow data. What is...
1. Frye Foods is considering a project that has the following cash flow data. What is the project's IRR? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box. Year: 0 1 2 3 4 5 Cash flows: -$1,150 $325 $325 $325 $325 $325 2.Van Auken Inc. is considering a project that has the following cash flows:...
can someone please explain with formulas and all work shown? i rate! :) A project has...
can someone please explain with formulas and all work shown? i
rate! :)
A project has an operating cash flow of $33,000. Initially, this 4-year project required $5,600 in net working capital, which is recoverable when the project ends. The firm also spent $16,400 on equipment to start the project. This equipment will have a book value of $2,800 at the end of year 4. What is the cash flow for year 4 of the project if the equipment can...
ABC Company is considering a new project. The project is expected to generate annual sales of...
ABC Company is considering a new project. The project is expected to generate annual sales of $91,079, variable costs of $26,515, and fixed costs of $12,494. The depreciation expense each year is $17,170 and the tax rate is 37 percent. What is the annual operating cash flow? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer...
Large Manufacturing, Inc. is considering investing in some new equipment whose data are shown below. The...
Large Manufacturing, Inc. is considering investing in some new equipment whose data are shown below. The equipment has a 3-year class life and will be depreciated by the MACRS depreciation system, and it will have a positive pre-tax salvage value at the end of Year 3, when the project will be closed down. Also, some new working capital will be required, but it will be recovered at the end of the project's life. Revenues and cash operating costs are expected...
ABC Corporation is considering a project with the following projected numbers: Initial investment to purchase equipment...
ABC Corporation is considering a project with the following projected numbers: Initial investment to purchase equipment $260,000 Net working capital investment $16,500 Depreciate equipment to zero book value over the 4 year life of the project Estimated salvage value of the equipment is $50,000 at the end of the project All of net working capital recouped at end of the project $82,000 per year operating cash flow 12 percent discount rate. What is the NPV of the project if the...
Your company, Dominant Retailer, Inc., is considering a project whose data are shown below. Revenue and cash operating e...
Your company, Dominant Retailer, Inc., is considering a project whose data are shown below. Revenue and cash operating expenses are expected to be constant over the project's 5 year expected operating life; annual sales revenue is $95,000.00 and cash operating expenses are $37,500.00. The new equipment's cost and depreciable basis is $135,000.00 and it will be depreciated by MACRS as 5 year property. The new equipment replaces older equipment that is fully depreciated but can be sold for $7,500. In...
can someone please explain with formulas and all work shown? i
rate! :)
A project has an operating cash flow of $33,000. Initially, this 4-year project required $5,600 in net working capital, which is recoverable when the project ends. The firm also spent $16,400 on equipment to start the project. This equipment will have a book value of $2,800 at the end of year 4. What is the cash flow for year 4 of the project if the equipment can...
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