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Finance Problems 1) What is the initial outlay, given the following information: Equipment Price.   $375,000 Installation....

Finance Problems

1) What is the initial outlay, given the following information:

  • Equipment Price.   $375,000

  • Installation. 10,000

  • Power Survey 30,000

  • Shipping. 8,000

  • Working Capital   100,000

  • Project Marketing Report 15,000

2) What is the net equipment cost, given the following, when a new piece of equipment replaces an old one:

  • Old equipment sells for $125,000

  • Book value of old equipment 22,000

  • TaxRate 40%

  • New equipment cost 800,000

  • Site survey 18,000

  • Installation cost   20,000

3) Equipment is sold for $30,000 at the end of a project. The working capital return is $50,000. The tax rate is 40%. What is the terminal cash flow?

4) A piece of equipment was sold at the end of a project. The project received $85,000 for the equipment that carried a book value of $75,000. The tax rate is 35%. What is the salvage value?

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Answer #1

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Intial outlay = Equipment price+installation+shipping+working capital = 375000+10000+8000+100000

=493000

Please ask remaining parts seperately, questions are unrelated
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