Ask Question, Ask an Expert


Ask Project Management Expert

The Datum Co. has currently completed a $200,000, two-year marketing study. Based on results of study, Datum has evaluated that 6,000 units of its new electro-optical data scanner could be sold annually over next 8 years, at price of $8,000 each. Variable costs per unit are $4,400, and fixed costs total $5.4 million per year.

Start-up costs include $17.6 million to make production facilities, $1.5 million for land, and $4 million in net working capital. $17.6 million facility will be decreased on straight-line basis to value of zero over eight-year life of project. At the end of project's life, facilities (including the land) will be sold for estimated $4.7 million. Value of land is not expected to change during eight year period.

At last start-up would also entail tax-deductible expenses of $0.4 million at year zero. Datum is ongoing, profitable business and pays taxes at 35% rate on all income and capital gains. Datum has 20% opportunity cost for projects such as this one.

Determine operating cash flow that Datum's project produce each year during its life?

Determine the initial cash flow at year 0?

Project Management, Management Studies

  • Category:- Project Management
  • Reference No.:- M933188

Have any Question? 

Related Questions in Project Management

Identify one balancing loop and one reinforcing loop these

Identify one Balancing Loop and one Reinforcing Loop. These feedback loops should be critical to Whole Foods Market's performance and success. You should have a good idea of what these are from your previous analysis. Ex ...

What are the differences between a project operations and a

What are the differences between a project, operations, and a program? Please be sure to provide an example and justification for each. Your response should be at least 200 words in length.

Fundamentals of project managementdefining the projectusing

Fundamentals of Project Management Defining the Project Using the South University Online Library or the Internet, research, select, and scope out any project of your choice. The project you select must meet the followin ...

1 write short notes ona role of project sponsorsb

1. Write short notes on: a. Role of project sponsors b. Importance of project budget c. Debt financing d. Financial feasibility of a project 2. Describe the Engineering, Procurement Construction (EPC) contract. 3. Explai ...

Agile project managementproject title us homeland security

Agile Project Management Project Title: U.S. Homeland Security Biohazard Incident Tracking and Coordination System (BITCS). Brief Description: XYZ has just won a contract with the federal government to put in place a sta ...

Question crm read the forbes article the role of business

Question: CRM Read the Forbes article, "The Role of Business Ethics in Relationships with Customers." Based on the content presented in the article, describe the strategic importance of Customer Relationship Management ( ...

During this discussion talk about and examine the processes

During this discussion, talk about and examine the process(es) of collecting information security measures, how often do they need to be collected, what are the downsides of collecting and reporting the measures too freq ...

Your ceo is a visionary who wants you to transform the way

Your CEO is a visionary who wants you to transform the way the company conducts business. She is fascinated by computer software for project management and requires that you conduct a SWOT analysis of this service in rel ...

Individual assignment risk driversrisk assessment and risk

Individual Assignment: Risk Drivers Risk assessment and risk management are used to identify and mitigate risk drivers. A risk driver is a situation in a project from which project risks can arise. Identifying risk drive ...

Case studyread the following scenario and answer the

Case Study Read the following scenario and answer the corresponding questions upon your completion. You recently earned your Project Management Professional (PMP) certification, and you are excited to share the news with ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate