Annual cash flow of project in first year

Assignment Help Business Management
Reference no: EM132556726

You are considering a new project that requires $300,000 investment in a machine, including installation and shipping cost. The life of the machine is three years, and it depreciates via 3-year MACRS methods (33.33%, 44.45%, 14.81%, and 7.41%). If you operate this project, the annual sales of the firm increases by $250,000 a year, and the annual operating expense increased by $100,000. The firm has a marginal tax rate of 34%. In order to start the project, the firm has to invest $30,000 in working capital. The expected market value of the machine is $50,000 in three years when the project is terminated. What is the annual cash flow of this project in the first year?

Reference no: EM132556726

Questions Cloud

Transactional and situational leadership styles : Discuss how to use transformational leadership combined with the use of emotional intelligence to improve a situation involving teams at work.
How to find the dollar amount of the fy cost of goods sold : How to Find the dollar amount of the FY 2018 cost of goods sold. (Round dollar values & enter as whole dollars only.)
What are the stages of corporation life cycle : What are the stages of a corporation's life cycle? How can a corporation's life cycle be extended? What is strategy implementation?
How to determine the dollar amount of the fy : How to determine the dollar amount of the FY 2018 beginning Work-in-Process Inventory. (Round dollar values & enter as whole dollars only.)
Annual cash flow of project in first year : You are considering a new project that requires $300,000 investment in a machine, including installation and shipping cost
Determine the dollar amount of annapolis clothing : Determine the dollar amount of Annapolis Clothing's Finished Goods Inventory for January 1, 2018. (Round dollar values & enter as whole dollars only.)
Depreciation expense of project-louie leisure products : Louie's Leisure Products is considering a project which will require the purchase of $1.3 million in new equipment. Shipping
Psychology-social psychology-sociology and anthropology : Organizational behavior is really the combination of four areas of study - psychology, social psychology, sociology, and anthropology.
How to determine the total manufacturing costs incurred : How to determine the total manufacturing costs incurred during the fiscal year 2018. (Round dollar values & enter as whole dollars only.)

Reviews

Write a Review

Business Management Questions & Answers

  What are the importance of an information system

1. What are the importance of an information system? Why information system is necessary?

  Impact of training and development on employee performance

What the questions that should be added in questionnaire to analyse the impact of training and development on employee performance?

  What must coors do to improve its future prospects?

What must Coors do to improve its future prospects?

  Purpose of the installed smoke management system

The property owner asks you what the firefighters smoke control station (FSCS) is, and what is the purpose of the installed smoke management system?

  Describe theories of change implementation that would have

Describe theories of change implementation that would have helped the administration at Springfield General Hospital solve the problem of medication mistakes?

  Identify the individual/group-organization conflict

(A) Identify the individual/group/organization conflict. Explain why you believe this

  What amount of loss may roadrunner recognize on distribution

Roadrunner Corporation never used the land for business purposes during the time it owned the property. What amount of loss may Roadrunner recognize on the distribution of the land?

  Write cover letter of introduction

How to write Cover Letter of introduction to the HR Director for a position in the retail industry focusing

  How the conflict could have been better managed by the team

Explain how the conflict could have been better managed by the team and team leader. Consider how your conflict management style.

  What experience with emrs

What's your experience with EMRs? How would you describe your health care provider's effectiveness using them?

  Description of an image

Which of the following does NOT apply to the following description of an image?

  Analytical techniques for idea generation at rubbermaid

Analytical Techniques for Idea Generation at Rubbermaid Inc. -  Select a couple of methods and see what you come up with. Some suggested (but not mandatory) techniques that you might wish to explore would include determinant gap maps, dimensional a..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd