The companys tax rate is 35 and the required rate of return, Ask an Expert

Finance

A company is considering a new venture. This venture will require the purchase of $321,000 of equipment which belongs to a CCA rate of 20%. It will also require $45,000 in inventory, and will increase accounts payable by $73,000. Expected annual sales are $625,000 with annual costs of $480,000. The project will last for five years. The company's tax rate is 35% and the required rate of return is 14%. If the equipment is not expected to have a salvage value, what is the NPV of this project?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M947449

Have any Question?Write your Review or question?

Related Questions in Basic Finance

A firm has total assets of 592395 current assets of 186859

A firm has total assets of $592395, current assets of $186859, current liabilities of $143545, and total debt of $210421. What is the debt-equity ratio? Round your answer to two decimal places.

A credit unions rate-climber gic pays rates of 2 6 and 8

A credit union's Rate-Climber GIC pays rates of 2%, 6%, and 8% compounded semiannually in successive years of a three-year term. How much interest will be earned in the second year, if $18,000 is invested in this GIC?

Principals of financial markets group assignment -in groups

Principals of Financial Markets Group Assignment - In groups of 3-4, students should choose firstly an industry and secondly two (2) ASX listed companies in this same industry upon which to undertake a fundamental analys ...

Question - robert gillman an equity research analyst at

Question - Robert gillman, an equity research analyst at Gillman Advisors, believes in efficient markets, He has been following the mining industry for the past 10 years and needs to determine the constant-growth rate th ...

Please help me study for a test by helping me solve this

Please help me study for a test by helping me solve this question. Please show work/formulas used. A cash flow stream has the following with a discount rate of 16.25%. Years: 0 1 2 3 4 CFs: $0 $0 $400 $0 $200 What is the ...

You currently have 120000 in a bond account and 500000 in a

You currently have $120,000 in a bond account and $500,000 in a stock account. You plan to add $5,000 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 10.5 pe ...

Determine the internal rate of return for a project that

Determine the internal rate of return for a project that costs $177,000 and would yield after-tax cash flows of $21,000 per year for the first 5 years, $29,000 per year for the next 5 years, and $42,000 per year for the ...

Question - a company currently pays a dividend of 4 per

Question - A company currently pays a dividend of $4 per share (D0 = $4). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, then at a constant rate of 7% thereafter. Th ...

Question - super credit corporation has an allowance

Question - Super credit Corporation has an allowance account with a credit balance of $2,000. Prepare the entry to recognize bad debt expense if: (a) Bad debts are estimated at 4% of credit sales of $80,000. (b) Bad debt ...

Ultra petroleum has earnings per share of 156 and a pe

Ultra Petroleum has earnings per share of $1.56 and a P/E ratio of $32.48. What is the stock price?

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

Recent Questions

Ask Basic Finance Expert