Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem1: Your Company is considering building a new office complex. Your company already owns land suitable for the new complex. The current book value of the land is dollar 100,000, however a commercial real estate again has informed you that an outside buyer is interested in purchasing this land & would be willing to pay $650,000 for it. When computing the NPV of your new office complex, ignoring taxes, the appropriate incremental cash flow for the use of this land is:

[A] $100,000

[B] $750,000

[C] $650,000

[D] $0

problem2: You are thinking adding a micro brewery on to one of your company’s existing restaurants. This will entail an increase in inventory of $8,000, and rise in accounts payables of $2,500, & an increase in property, plant, & equipment of dollar 40,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the micro brewery is:

[A] $6,500

[B] $5,500

[C] $45,500

[D] $10,500

problem3: Determine which of the following cash flows are relevant incremental cash flows for a project that you are currently considering investing in?

[A] Interest payments on debt used to finance the project.

[B] Research and Development expenditures you have made.

[C] The tax savings brought about by the projects depreciation expense.

[D] The cost of a marketing survey you conducted to determine demand for the proposed project.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920655

Have any Question? 


Related Questions in Basic Finance

1 briefly explain how shareholders returns are taxed twice

1. Briefly explain how shareholders' returns are taxed twice in the United States with tax laws that favor capital gains. 2. Rightists argue that increasing a firm's dividend will increase its value. Review some of the k ...

Interpret financial information projects-learning outline -

Interpret financial information Projects- Learning Outline - Within this resource, you will be covering the following key topics: Access and interpret financial information Use and provide financial information Use corre ...

The city of malaise is considering a 10 tax on the revenues

The city of Malaise is considering a 10% tax on the revenues of all hotels/motels inside the city limits. Although not completely different from hotels and motels in the nearby suburbs, the ones in Malaise have a distinc ...

Your firm needs a computerized machine tool lathe which

Your firm needs a computerized machine tool lathe which costs $60,000 and requires $13,000 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MAC ...

The feds impact on security prices explain how the feds

The Fed's Impact on Security Prices : Explain how the Fed's monetary policy may indirectly affect the price of equity securities.

The fed versus congress should the fed or congress decide

The Fed versus Congress: Should the Fed or Congress decide the fate of large financial institutions that are near bankruptcy?

Problems-1 cummingsnbsp has eat depreciation expense

PROBLEMS- 1. Cummings  has EAT, depreciation expense, capital expenses, debt and debt principal payments of $9m, $2.8m, $1.3m,  $40m and $1.5m respectively. Between the first and the second years, it has current assets o ...

How would you use preferred and convertible instruments as

How would you use preferred and convertible instruments as investments to strengthen your portfolio?

A with reference to the four quadrant diagram explain in

a) With reference to the four quadrant diagram, explain in your own words the short and long run effects of an (unanticipated) monetary expansion on exchange rates; interest rates; the price level; the trade balance; out ...

The fed and commercial paper why and how did the fed

The Fed and Commercial Paper : Why and how did the Fed intervene in the commercial paper market during the credit crisis?

  • 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