A company is considering purchasing an equipment for $134,808. Shipping and installation costs would cost another $3,377. The project would require an initial investment in net working capital of $16,953 which would be recouped at the end of the project. What is the project's initial outlay?
Do not enter $ or comma in the answer answer. Enter your final answer of initial outlay as an absolute number (that means, enter it as a positive number).
Project's initial outlay = $134,808 + $3,377 + $16,953
Project's initial outlay = $155,138
A company is considering purchasing an equipment for $134,808. Shipping and installation costs would cost another...
What is the project's initial investment outlay based on the following information: The machinery could be purchased for $48,588. Shipping and installation costs would cost another $16,509. The project would require an initial investment in net working capital of $21,763. Do not enter $ or comma in the answer answer. Enter your final answer of initial outlay as an absolute number (that means, enter it as a positive number).
TTTTTTTTT current yield. 0 beta. Question 21 1 pts A project requires $71,129 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 2 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box Question 22 1 pts A company is considering purchasing an equipment...
TTTTTTTTT current yield. 0 beta. Question 21 1 pts A project requires $71,129 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 2 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box Question 22 1 pts A company is considering purchasing an equipment...
The base price of a spectrometer is $140,000, and shipping and installation costs would add another $30,000. The machine falls into the MACRS 3-year class (33%, 45%, 15% and 7%) and it would be sold after 3 years for $60,000. The machine would require a $8,000 increase in working capital (increased inventory less increased accounts payable). There would be no effect on revenues, but pre-tax labor costs would decline by $50,000 per year. The marginal tax rate is 40%, and...
ABC, Inc. purchased an equipment at time=0 for $45,336. The shipping and installation costs were $5,609. The equipment is classified as a 5-year MACRS property. The investment in net working capital at time=0 was $11,997 which would be recouped at the end of the project. The project life is four years. At the end of the fourth year, the company will sell the equipment for $10,406. The annual cash flows are $34,514. What is the cash flow of the project...
ABC, Inc. purchased an equipment at time=0 for $83,515. The shipping and installation costs were $24,451. The equipment is classified as a 5-year MACRS property. The investment in net working capital at time=0 was $7,345 which would be recouped at the end of the project. The project life is five years. At the end of the fifth year, the company will sell the equipment for $34,265. The annual cash flows are $44,618. What is the cash flow of the project...
ABC, Inc. purchased an equipment at time=0 for $140,132. The shipping and installation costs were $15,535. The equipment is classified as a 7-year MACRS property. The investment in net working capital at time=0 was $14,402 which would be recouped at the end of the project. The project life is six years. At the end of the sixth year, the company will sell the equipment for $6,548. The annual cash flows are $95,121. What is the cash flow of the project...
ABC, Inc is considering the purchase of a new equipment. The equipment costs $16507 and an additional $4086 is needed to install it. The project will also require an initial $4493 investment in net working capital. The equipment will be depreciated straight-line to zero over a five-year life. What is the project's initial investment outlay?
Johnson Products is considering purchasing a new milling machine that costs $120,000. The machine’s installation and shipping costs will total $4,500. If accepted, the milling machine project will require an initial net working capital investment of $20,000. Johnson plans to depreciate the machine on a straight-line basis over a period of 8 years. About a year ago, Johnson paid $12,000 to a consulting firm to conduct a feasibility study of the new milling machine. Johnson’s marginal tax rate is 40...
Company ABC 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 require working capital upfront 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? Sales Revenues 75,000 Operating costs (excluding dep) 25,000 Tax rate 35%...