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

Assessmentnote the assessments in this course build upon

Assessment Note: The assessments in this course build upon each other, so you are strongly encouraged to complete them in sequence. For this assessment, describe a project you have been a part of, which underwent some so ...

Cautionary tales of indiscreete - mail wrongdoing at

CAUTIONARY TALES OF INDISCREETE - MAIL Wrongdoing at Computer Associates and at Enron, once giants in their respective industries, was brought to light by forgotten and/or deleted e-mails. The recovered e-mails brought d ...

Selling the idea of implant chips at your schoollets assume

SELLING THE IDEA OF IMPLANT CHIPS AT YOUR SCHOOL Let's assume for a moment that your team is in favor of using implant chips that contain vitally important information such as identification and medical information. Your ...

Communicating project risksassignmentin previous weeks you

Communicating Project Risks Assignment: In previous weeks, you selected a project around which to develop your Risk Management Strategy and Plan Key Assignment. In Week 1, you crafted a letter to the project sponsor expl ...

When selling antiques you can usually obtain a higher price

When selling antiques, you can usually obtain a higher price for those that have a provenance, which is information detailing the origin and history of the object. For example, property owned by Jacqueline Kennedy Onassi ...

International truck makes a huge bet on a service -

INTERNATIONAL TRUCK MAKES A HUGE BET ON A SERVICE - ORIENTED ARCHITECTURE Service-oriented architectures (SoAs) do seem to be the future for integrated IT systems within an organization, bringing together both applicatio ...

Given is the recommendation cisco system1read the

Given is the recommendation cisco System. 1. Read the recommendations for Cisco Systems Inc. The document is uploaded, names "Cisco Systems -Recommendations". The recommendation/analysis was done by your peers. Your assi ...

Contribution paperyou will write a 2 - 4 page paper about

Contribution Paper You will write a 2 - 4 page paper about your experience in forming your organization. Talk about your team process. Your team has the interesting challenge of working from remote locations as a virtual ...

Backgroundmartin luther king was one of the great orators

Background Martin Luther King was one of the great orators of the 20th century, and his style has been used as a model for many, including President Barack Obama. In this SLP assignment, you will analyze MLK's style and ...

1 what is selective exposure why do people engage in it2

1. What is selective exposure? Why do people engage in it? 2. How do marketers attempt to shape consumers' learning? 3. Why are marketers concerned about consumer attitudes? 4. In what ways do lifestyles affect the consu ...

  • 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