Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

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

1 how do efficiency and effectiveness metrics differ2 what

1. How do efficiency and effectiveness metrics differ? 2. What are some commonly used infrastructurecentric metrics? 3. What are some commonly used Web-centric metrics?

Consider the following map1 develop two simple heuristics

Consider the following map: 1. Develop two simple heuristics to visit all highlighted squares (Travelling salesperson) travelling the minimal distance: moving one cell = 1 unit. You can only travel horizontally and verti ...

To prepare for this assignmentreview the world health

To prepare for this Assignment: Review the World Health Organization website in this week's Learning Resources. Research health care disparities between the United States and another country of your choice. Compare econo ...

Read the given case studyand answer the following

Read the given case study.and answer the following question:- QUESTIONS 1. Why might peer or co-worker evaluations be necessary to evaluate values? 2. Do you think evaluations of values should receive equal, more, or les ...

Type of assessmentthis summative assessment will enable

Type of Assessment This summative assessment will enable your Assessor to make a judgement of competency based on the submission of your completed assignments against the requirements of this unit of competency. Assessor ...

Personal benchmarks and benchmarking how do you use

PERSONAL BENCHMARKS AND BENCHMARKING How do you use benchmarks and benchmarking in your personal life? Think about grades, making money, supporting charities, and the like. Choose one significant way in which you use ben ...

Identifying qualified customers is important to the

Identifying qualified customers is important to the survival of any organization. NAICS provides helpful information about many different businesses. Find the NAICS manual at the library and identify the NAICS code for t ...

Roger williams medical center boosts its it

ROGER WILLIAMS MEDICAL CENTER BOOSTS ITS IT INFRASTRUCTURE:- Roger Williams Medical Center is a 220-bed hospital located in Providence, Rhode Island. It has been widely recognized as a leading provider of health care, no ...

Using a distributed component approach propose an

Using a distributed component approach, propose an architecture for a national theater booking system. Users can check seat availability and book seats at a group of theaters. The system should support ticket returns so ...

Daynamic how to measure success and sustain the gainmiddle

Daynamic :How to Measure Success and Sustain the Gain Middle East Company - Write in APA Style in 4 PAGES. Choose an organization at which you are currently working or a Middle Eastern organization with which you are fam ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro