Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Task1. Hollister and Hollister are considering the new project. The project will need $522,000 for new fixed assets, $218,000 for additional inventory, and $39,000 for additional accounts receivable. Short-term debt is anticipated to rise by $165,000. The project has a six year life. The fixed assets will be depreciated straight-line to the zero book value over the life of project. At the end of project, fixed assets can be sold for 20 percent of their original cost. The net working capital returns to its original level at the end of project. The project is anticipated to generate annual sales of $875,000 and costs of $640,000. The tax rate is 34 percent and the required rate of the return is 14 percent.

problem1. What is project's cash flow at time zero?

a. -944,000

b. -614,000

c. -779,000

d. -720,000

e. -536,000

problem2. What is cash flow recovery from net working capital at the end of this project?

a. 344,000

b. 14,000

c. 75,000

d. 92,000

e. 422,000

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93915
  • Price:- $16

Guranteed 24 Hours Delivery, In Price:- $16

Have any Question? 


Related Questions in Financial Accounting

Dividends per sharetriple z inc a developer of radiology

Dividends per share Triple Z Inc., a developer of radiology equipment, has stock outstanding as follows: 12,000 shares of cumulative preferred 2% stock, $150 par and 50,000 shares of $10 par common. During its first four ...

Viejol corporation has collected the following information

Viejol Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $220,000 (40% variable and 60% fixed), direct materials $508,000, direct ...

After enactment of sarbanes-oxley response to enron and

After enactment of Sarbanes-Oxley response to Enron and Worldcom, it was hoped that accounting and financial frauds would be a thing of the past. But, alas, that was not the case. Based on your research or experience, te ...

Muggsy bogues company purchased equipment for 212000 on

Muggsy Bogues Company purchased equipment for $212,000 on October 1, 2014. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 40,000 units and es ...

Practice questionsexplain the main items you would expect

Practice questions: Explain the main items you would expect to find on the balance sheet of a limited company which are not present on the balance sheet of a sale trader.

A firm purchased fixed assets 3 years ago for 4000 the

A firm purchased fixed assets 3 years ago for $4,000 the fixed assets can be sold today for $3,000. The balance sheet shows fixed assets of $850, no long-term debt, current liabilities of $750, and net working capital of ...

Goulds corp pays a constant 785 dividend on its stock the

Goulds Corp. pays a constant $7.85 dividend on its stock. The company will maintain this dividend for the next 12 years and will then cease paying dividends forever. If the required return on this stock is 9 percent, wha ...

I am trying to learn more about a particular companys debts

I am trying to learn more about a particular company's debts. Specifically, I want to find out how much debt the company has, when the debt principal needs to be paid, the underlying interest rate on the debt, and how mu ...

Which of the following will be listed in the operating

Which of the following will be listed in the operating section of the statement of cash flows that is prepared using the indirect? method? A. payments to suppliers B. ?increases/decreases in current liabilities C. collec ...

Bridgette is known as the ldquodoll ladyrdquo she started

Bridgette is known as the “doll lady.” She started collecting dolls as a child, always received one or more dolls as gifts on her birthday, never sold any dolls, and eventually owned 600 dolls. She is retiring and moving ...

  • 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