Ask Question, Ask an Expert


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

1 select one us publicly traded company and review its most

1. select one U.S. publicly traded company and review its most recent Annual Report. (You may use one of the three companies you selected for your Stock Journal assignment.) o Use the Income Statement and Balance Sheet t ...

Question how many months it will take to grow your money

Question: How many months it will take to grow your money from $10,250 to $25,000 if you can earn an interest of 8% compounded monthly? How many years will it take? Please show work.

Directions read carolina blues credit report on the

Directions: Read Carolina Blue's credit report on the following pages. Carolina is seeking a bank loan to purchase a new vehicle. Analyze Carolina's credit report and answer the following questions to determine if Caroli ...

Types of markets distinguish between primary and secondary

Types of Markets Distinguish between primary and secondary markets. Distinguish between money and capital markets.

What is a prospectuswhat are the differences among a

What is a prospectus? What are the differences among a prospectus, a registration statement, and a bond indenture?

Below are three line items from a corporations income

Below are three line items from a corporation's Income Statement. Select the correct line to use and compute the federal tax. Sales: $335,000 Cost of Goods Sold: $225,000 Net Profit Before Tax: $ 92,000

The final paper ought to show an understudys capacity to

The Final Paper ought to show an understudy's capacity to incorporate and orchestrate course ideas with chose readings to impart his/her comprehension of legal bookkeeping, extortion ideas, and their applications in asso ...

1assume the hong kong dollar hk value is tied to the us

1. Assume the Hong Kong dollar (HK$) value is tied to the U.S. dollar and will remain tied to the U.S. dollar. Assume that interest rate parity exists. Today, an Australian dollar (A$) is worth $.50 and HK$3.9. The one-y ...

Effectiveness of monetary policy what circumstances might

Effectiveness of Monetary Policy : What circumstances might cause a stimulative monetary policy to be ineffective?

Geotechnical instrumentation is frequently employed for

Geotechnical Instrumentation is frequently employed for monitoring the condition of reclamation. Sometimes two piezometers are installed inside the same borehole. What is the reason behind this?

  • 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