All of net working capital will be recouped

Assignment Help Financial Management

Reference no: EM132007621

A project has an initial requirement of $199,701 for new equipment and $8,971 for net working capital. The installation costs to get the new equipment in working condition are 13,225. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $94,668. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $99,008 and the cost of capital is 13% What is the project's NPV if the tax rate is 33%?

Reference no: EM132007621

Questions Cloud

Prompt the user to input a food item name : When accuracy is essential, floats are not used to represent currency due to rounding and accumulation errors. Python provides several primitives

Consequences of downgrade of country rating : What are the consequences of a downgrade of a country rating by an individual rating agency for other economic agents?

Explain the different types of financial statements : Think about the different types of financial statements you learned about in this unit (the income statement, statement of retained earnings, balance sheets.

Explain why a reference to the fragmentmanager : Explain why a reference to the FragmentManager is passed to ItemCursorAdapter's constructor?

All of net working capital will be recouped : All of the net working capital will be recouped at the end of the project. What is the project's NPV if the tax rate is 33%?

What is polymorphism in java : a. Java is a platform independent language. What does this mean?

The firm needs to plow back its earnings to fuel growth : No dividends will be paid on the stock over the next nine years, because the firm needs to plow back its earnings to fuel growth.

Explain the importance of innovation : Explain the importance of innovation in your selected division's vision, mission, and values, and determine your business model for this new division.

Discuss the importance and meaning of horizontal analysis : Prepare a three-year, horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal.

User Account

All Pages