Homework Answers
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$6,923.5562
= $6,924
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A project will have annual operating cash flows of $44,500 for four years. At the beginning...
A 4-year project has an annual operating cash flow of $50,500. At the beginning of the...
A 4-year project has an annual operating cash flow of $50,500. At the beginning of the project, $4,150 in net working capital was required, which will be recovered at the end of the project. The firm also spent $22,200 on equipment to start the project. This equipment will have a book value of $4,580 at the end of the project, but can be sold for $5,610. The tax rate is 35 percent. What is the Year 4 cash flow? $19,512...
Question 7 A project will produce operating cash flows of $45,000 a year for four years...
Question 7 A project will produce operating cash flows of $45,000 a year for four years and has a networking capital of 5,000 which will be used at year and recovered at the end of the project. The equipment will costs $120,000 and will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the equipment will have an after-tax cashflow from salvage of $25,000. What is the otal cashflow...
A project will produce an operating cash flow of $283,000 a year for four years. The...
A project will produce an operating cash flow of $283,000 a year for four years. The initial cash outlay for equipment will be $631,000. An aftertax salvage value of $42,000 for the equipment will be received at the end of the project. The project requires $56,000 of net working capital that will be fully recovered. What is the net present value of the project if the required rate of return is 16 percent? $166,218.32 $159,009.65 $151,870.15 $143,218.96 $137,642.18
A project will produce an operating cash flow of $315,000 a year for four years. The...
A project will produce an operating cash flow of $315,000 a year for four years. The initial cash outlay for equipment will be $874,000. The net aftertax salvage value of $43,000 will be received at the end of the project. The project requires 78,000 of net working capital up front that will be fully recovered. What is the net present value of the project if the required rate of return is 13 percent? $74,311.68 $69,893.52 $64,410.27 $59,170.03 $54,736.08
A project is expected to generate annual cash flows of $22,500 during the next three years....
A project is expected to generate annual cash flows of $22,500 during the next three years. The initial investment of this project has 2 components: $50,000 fixed-asset investment plus $3000 working capital investment. Assume the project's opportunity cost of capital (i.e., the discount rate) is 10%. How much is the project's net present value (NPV)? A) 6,208 B) 3,508 C) 5,208 OD) 4,208 E) 2,508
find annual operating cash flows of the project for all ten years. then find internal rate of return for the project us...
find annual operating cash flows of the project for all ten
years. then find internal rate of return for the project using the
incremental cash flows.
Project cash flow and NPV. The managers of Class Autos incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of 54,400,000 and will be depreciated using a five-year MACRS T The manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will...
Fly High Co. is expanding and expects operating cash flows of $65,000 a year for four...
Fly High Co. is expanding and expects operating cash flows of $65,000 a year for four years as a result. This expansion requires 5105,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $7,000 of net working capital, which will be recovered at the end of the project. What is the net present value of this expansion project at a required rate of return of 15 percent? A)- 574,600...
2. Bruno's Lunch Counter is expanding and expects operating cash flows of $26,000 a year for...
2. Bruno's Lunch Counter is expanding and expects operating cash flows of $26,000 a year for 4 years as a result. This expansion requires $39,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $3,000 of net working capital, 100% of which will be recovered at he end of the project. What is the net present value of this expansion project at a required rate of return of 16...
show work 17. A project is expected to create operating cash flows of $30,000 a year...
show work
17. A project is expected to create operating cash flows of $30,000 a year for three years. The initial cost of the fixed assets is $75,000. These assets will be worthless at the end of the project. An additional $5,000 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 12 percent? A. $-20,157.76 $-4,386.16 $1,306.09 $5,208.11 $15,954.17
Atlantic Manufacturing is considering a new investment project that will last for four years. The delivered...
Atlantic Manufacturing is considering a new investment project that will last for four years. The delivered and installed cost of the machine needed for the project is $23,251 and it will be depreciated according to the three-year MACRS schedule. The project also requires an initial increase in net working capital of $307. Financial projections for sales and costs are in the table below. In addition, since sales are expected to fluctuate, NWC requirements will also fluctuate. The end-of-year NWC requirements...
Question 7 A project will produce operating cash flows of $45,000 a year for four years and has a networking capital of 5,000 which will be used at year and recovered at the end of the project. The equipment will costs $120,000 and will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the equipment will have an after-tax cashflow from salvage of $25,000. What is the otal cashflow...
A project is expected to generate annual cash flows of $22,500 during the next three years. The initial investment of this project has 2 components: $50,000 fixed-asset investment plus $3000 working capital investment. Assume the project's opportunity cost of capital (i.e., the discount rate) is 10%. How much is the project's net present value (NPV)? A) 6,208 B) 3,508 C) 5,208 OD) 4,208 E) 2,508
find annual operating cash flows of the project for all ten
years. then find internal rate of return for the project using the
incremental cash flows.
Project cash flow and NPV. The managers of Class Autos incorporated plan to manufacture classic Thunderbirds (1957 replicas). The necessary foundry equipment will cost a total of 54,400,000 and will be depreciated using a five-year MACRS T The manager has an estimate for the sale of the classic Thunderbirds. The annual sales volume will...
Fly High Co. is expanding and expects operating cash flows of $65,000 a year for four years as a result. This expansion requires 5105,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $7,000 of net working capital, which will be recovered at the end of the project. What is the net present value of this expansion project at a required rate of return of 15 percent? A)- 574,600...
2. Bruno's Lunch Counter is expanding and expects operating cash flows of $26,000 a year for 4 years as a result. This expansion requires $39,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $3,000 of net working capital, 100% of which will be recovered at he end of the project. What is the net present value of this expansion project at a required rate of return of 16...
show work
17. A project is expected to create operating cash flows of $30,000 a year for three years. The initial cost of the fixed assets is $75,000. These assets will be worthless at the end of the project. An additional $5,000 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 12 percent? A. $-20,157.76 $-4,386.16 $1,306.09 $5,208.11 $15,954.17
Atlantic Manufacturing is considering a new investment project that will last for four years. The delivered and installed cost of the machine needed for the project is $23,251 and it will be depreciated according to the three-year MACRS schedule. The project also requires an initial increase in net working capital of $307. Financial projections for sales and costs are in the table below. In addition, since sales are expected to fluctuate, NWC requirements will also fluctuate. The end-of-year NWC requirements...
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