Summer Tyme, inc., is considering a new three year expansion project that requires an initial fixed...
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2279000. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $2330000 in annual sales, with costs of $1645000. If the tax rate is 0.26 , what is the OCF for this project?
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.698 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $4,176,000 in annual sales, with costs of $1,670,400. Required: If the tax rate is 35 percent, what is the OCF for this project? rev: 09_18_2012 $2,176,740 $610,740 $2,505,600 $2,067,903 $2,285,577 Dog Up! Franks...
P10-9 Calculating Project OCF (LO1] Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset investment of $6.372 million. The fixed asset will be depreciated straight-line to zero over its 2-year tax life, after which time it will be worthless. The project is estimated to generate $5,664,000 in annual sales, with costs of $2,265,600. Required: If the tax rate is 33 percent, what is the OCF for this project?
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.644 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $361,200. The project requires an initial investment in net working capital of $516,000. The project is estimated to generate $4,128,000 in annual sales, with costs of $1,651,200. The tax rate is 32 percent and the required...
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $776,723. The fixed asset will be depreciated straight-line to 63,696 over its 3-year tax life, after which time it will have a market value of $105,666. The project requires an initial investment in net working capital of $75,981. The project is estimated to generate $257,580 in annual sales, with costs of $140,739. The tax rate is 0.32 and the required return on...
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $871000. The fixed asset will be depreciated straight-line to 75000 over its 3-year tax life, after which time it will have a market value of $89000. The project requires an initial investment in net working capital of $48000. The project is estimated to generate $193000 in annual sales, with costs of $105000. The tax rate is 0.21 and the required return on...
2 Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.998 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $155,400. The project requires an initial investment in net working capital of $222,000. The project is estimated to generate $1,776,000 in annual sales, with costs of $710,400. The tax rate is 34 percent and the...
Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,180,000 in annual sales, with costs of $875,000. The tax rate is 30 percent and the required return is 9 percent. What is the project’s NPV?
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $6.3 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $491,400 after 3 years. The project requires an initial investment in net working capital of $702,000. The project is estimated to generate $5,616,000 in annual sales, with costs of $2,246,400. The tax rate is 33 percent and the required return on the...
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $6.2 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $478,800 after 3 years. The project requires an initial investment in net working capital of $684,000. The project is estimated to generate $5,472,000 in annual sales, with costs of $2,188,800. The tax rate is 30 percent and the required return on the...
> you have copied my answer from chegg. Pravin Mandora here. very bad. If you dont know, how to solve, learn, do not copy.
Pravin Mandora Thu, Aug 11, 2022 4:06 PM