Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Swannee Resorts is bearing in mind a new project whose data are shown below. The equipment that would be used has a three year tax life, would be depreciated by the straight line method over the project's three year life, & would have zero salvage value. No new working capital would be required. Revenues & other operating costs are expected to be constant over the project's three year life. find out the project's Net Present Value? Ignore small rounding differences between your answer & the choices given. [Hint: Cash flows are constant in Years 1-3.]

WACC = 10 percent

Net investment cost (depreciable basis) = $65,000

Straight line depreciation rate = 33.33 percent

Sales revenues = $70,000

Operating costs excl. depreciation = $25,000

Tax rate = 35 percent

[A] $24,354.87$25,189.71

[B] $26,599.05

[C] $22,156.24

[D] $23,791.14

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M918011

Have any Question? 


Related Questions in Basic Finance

What are derivatives define forward futures and option

What are derivatives? Define forward, futures, and option agreements. What are the underlying instruments in these agreements?

Question 1finance has its origins ina economics and

Question 1 Finance has its origins in: a. economics and statistics b. accounting and sociology c. accounting and economics d. psychology and mathematics Question 2 Successful businesses typically progress through a serie ...

A firm is expected to pay a dividend of 355 next year and

A firm is expected to pay a dividend of $3.55 next year and $3.85 the following year. Financial analysts believe the stock will be at their price target of $120 in two years. Compute the value of this stock with a requir ...

Assume that you are interested to evaluate the stock of

Assume that you are interested to evaluate the stock of Woolworths Limited. Go to Morningstar DatAnalysis Premium (http://datanalysis.morningstar.com.au.dbgw.lis.curtin.edu.au/af/dathome?). (a) List three comparable firm ...

Q1 what are the main differences between a corporation and

Q1. What are the main differences between a corporation and a partnership? Q2. Use your own words, please briefly explain why financial sectors are important.

Assignment - tvm- tth classbullsubmit using assignment tab

Assignment - TVM- T/Th class • Submit using Assignment tab in eLearning by uploading your completed excel file. • Open a new (fresh) excel workbook to perform you calculations. • You are allowed only one submission, so p ...

Exercise 1adiscuss the following claim in a world without

Exercise 1 a) Discuss the following claim "In a world without transaction costs, information costs, financial intermediaries would not exist" b) In 2008, as the financial crisis started to develop in the US, the US gover ...

Discuss why financial markets are important to a healthy

Discuss why financial markets are important to a healthy economy and how they contribute to economic growth. Question two: assume that you recently graduated with a degree in finance and have just reported to work as an ...

The department of employment and training estimated the

The department of Employment and training estimated the following model of labour force participation in 2001 using census data on 49 local government areas in Queensland. The median annual earnings of full-time workers ...

Henry and sheree just had a babyhow much will they have to

Henry and Sheree just had a baby. How much will they have to invest today for the baby to have $100,000 for college in 18 years if the interest rate is 5 percent? If the interest rate is 10 percent?

  • 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