Also, what is the NPV? using the cash flow
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Also, what is the NPV? using the cash flow
A store will cost $625,000 to open....
A store will cost $875,000 to open. Variable costs will be 51% of sales and fixed...
A store will cost $875,000 to open. Variable costs will be 51% of sales and fixed costs are $210,000 per year. The investment costs will be depreciated straight-line over the 9 year life of the store to a salvage value of zero. The opportunity cost of capital is 8% and the tax rate is 40%. Find the operating cash flow each year if sales revenue is $700,000 per year. Using an operating cash flow of 118,688.89, calculate the Net Present...
A store will cost $875,000 to open. Variable costs will be 51% of sales and fixed...
A store will cost $875,000 to open. Variable costs will be 51% of sales and fixed costs are $210,000 per year. The investment costs will be depreciated straight-line over the 9 year life of the store to a salvage value of zero. The opportunity cost of capital is 8% and the tax rate is 40%. Find the operating cash flow each year if sales revenue is $700,000 per year.
A store will cost $925,000 to open. Variable costs will be 40% of sales and fixed...
A store will cost $925,000 to open. Variable costs will be 40% of sales and fixed costs are $190,000 per year. The investment costs will be depreciated straight-line over the 17 year life of the store to a salvage value of zero. The opportunity cost of capital is 10% and the tax rate is 30%. The operating cash flow is $219,323.53 when sales revenue is $800,000 per year. Calculate the Net Present Value. Should the store be opened or not?
Cash Flow/NPV
Your company has been approached to bid on a contract to sell 5,450 voice recognition (VR) computer keyboards a year for four years. Due to technological improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $4.4 million and will be depreciated on a straight-line basis to a zero salvage value. Production will require an investment in net working capital of $460,000 to be returned at the end...
A company will sell Gizmos to consumers at a price of $102 per unit. The variable...
A company will sell Gizmos to consumers at a price of $102 per unit. The variable cost to produce Gizmos is $44 per unit. The company expects to sell 15,000 Gizmos to consumers each year. The fixed costs incurred each year will be $110,000. There is an initial investment to produce the goods of $2,500,000 which will be depreciated straight line over the 16 year life of the investment to a salvage value of $0. The opportunity cost of capital...
Daily Enterprises is purchasing a $11,000,000 machine. The machine will be depreciated using straight-line depreciation over...
Daily Enterprises is purchasing a $11,000,000 machine. The machine will be depreciated using straight-line depreciation over its 6 year life and will have no salvage value. The machine will generate revenues of $7,000,000 per year along with fixed costs of $1,000,000 per year. If Daily's marginal tax rate is 36%, what will be the cash flow in each of years 1 to 6 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole...
Daily Enterprises is purchasing a $8,000,000 machine. The machine will be depreciated using straight-line depreciation over...
Daily Enterprises is purchasing a $8,000,000 machine. The machine will be depreciated using straight-line depreciation over its 6 year life and will have no salvage value. The machine will generate revenues of $8,000,000 per year along with costs of $3,000,000 per year. If Daily's marginal tax rate is 26%, what will be the cash flow in each of years 1 to 6 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number....
Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds...
Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of$4,100,000 and will be depreciated using a five-year MACRS life, LOADING... . The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will be as follows: Year one: 250 Year four: 360 Year two: 280 Year five: 300 Year three: 340 If the sales price is $28,000...
Amazon is looking at a new vending system with an installed cost of $625,000. This cost will...
Amazon is looking at a new vending system with an installed cost of $625,000. This cost will be depreciated straight-line to zero over the project’s five-year life, at the end of which the vending system can be scrapped for $95,000. The vending system will save the company $183,000 per year in pre-tax operating costs, and the system requires an initial investment in net working capital of $41,000. The tax rate is 34% and the discount rate is 8%. What is the NPV? What...
Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds...
Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,100,000 and will be depreciated using a five-year MACRS life,囲. Pro ected sales in annual units for the next five years are 290 per year. If the sales price is $28,000 per car, variable costs are $18,000 per car, and fixed costs are $1,300,000 annually, what is the annual operating cash flow f...
Daily Enterprises is purchasing a $11,000,000 machine. The machine will be depreciated using straight-line depreciation over its 6 year life and will have no salvage value. The machine will generate revenues of $7,000,000 per year along with fixed costs of $1,000,000 per year. If Daily's marginal tax rate is 36%, what will be the cash flow in each of years 1 to 6 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole...
Daily Enterprises is purchasing a $8,000,000 machine. The machine will be depreciated using straight-line depreciation over its 6 year life and will have no salvage value. The machine will generate revenues of $8,000,000 per year along with costs of $3,000,000 per year. If Daily's marginal tax rate is 26%, what will be the cash flow in each of years 1 to 6 (the cash flow will be the same each year)? Enter your answer rounded to the nearest whole number....
Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of $4,100,000 and will be depreciated using a five-year MACRS life,囲. Pro ected sales in annual units for the next five years are 290 per year. If the sales price is $28,000 per car, variable costs are $18,000 per car, and fixed costs are $1,300,000 annually, what is the annual operating cash flow f...
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