Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) New-Project Analysis

President of company you work for has asked you to estimate proposed acquisition of new chromatograph for firm’s R&D department equipment's basic price is= $140,000, and it would cost another= $21,000 to alter it for special use by your firm. Chromatograph, which falls into MACRS 3-year class, would be sold after three years for= $49,000. Use of equipment would need the increase in net working capital (spare parts inventory) of= $7,000. Machine would have no effect on revenues, but it is expected to save firm $42,000 per year in before-tax operating costs, mostly labour. Firm's marginal federal-plus-state tax rate is= 40%.

i) What is the Year-0 net cash flow?

ii) What are the net operating cash flows in Years 1, 2, and 3?

iii) What is the extra (non-operating) cash flow in Year 3?

iv) If project's cost of capital is 14%, must chromatograph be purchased (Y/N)?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914702

Have any Question? 


Related Questions in Basic Finance

1 what is political risk what are the important elements of

1. What is political risk? What are the important elements of political risk? How can companies prepare for political risk? 2. Discuss three of the world's major religions. What are some implications of these religions f ...

1 why might an individual find a 20 federal reserve note to

1. Why might an individual find a $20 Federal Reserve Note to be more desirable as a form of money than a $20 gold coin? Which would the government find more desirable? Briefly explain. 2. What are the key differences be ...

1 discuss the differences between foreign trade and foreign

1. Discuss the differences between foreign trade and foreign direct investment. 2. Identify some of the competitive threats of RDEs. 3. Discuss the ethics of outsourcing to other countries where the wages are less than o ...

1 what are transition economies what are some of the

1. What are transition economies? What are some of the important changes occurring in transition economies? 2. Discuss some of the major legal systems that exist around the world. What are some of the most important diff ...

Mass-transfer data were obtained for the vaporization of

Mass-transfer data were obtained for the vaporization of naphthalene into a turbulent gas stream flowing in an annulus. Both the inside rod and the outer pipe of the annular conduit were made of naphthalene. To correlate ...

Abc corporation just paid a dividend of 150 a share the

ABC Corporation just paid a dividend of $1.50 a share. The dividend is expected to grow at 10% a year for the next 2 years, and the 5% per year thereafter. The required return to invest in ABC stock is 10.50%. What shoul ...

Wiggle pools has total equity of 358200 and net income of

Wiggle Pools has total equity of $358,200 and net income of $47,500. The debt-equity ratio is .68 and the total asset turnover is 1.2. What is the profit margin?

In addition to the key words you should also be able to

In addition to the key words, you should also be able to define the following terms: within-subjects design repeated-measures design participant attrition history maturation instrumentation testing effects statistical re ...

1q norris co has developed an improved version of its most

1Q. Norris Co. has developed an improved version of its most popular product. To get this improvement to the market, will cost $48 million and will return an additional $13.5 million for 5 years in net cash flows. The fi ...

Assume the sweatshirt test scores are normally distributed

Assume the sweatshirt test scores are normally distributed with a mean of 500 and a standard deviation of 100. (a) Consider all random samples of 100 test scores. What is the standard deviation of the sample means? (b) W ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen