Reference no: EM132968665
ZooLogic, a zoo management company, has asked your team to evaluate a proposed capital budgeting project. Your team has been charged with analyzing the Creature Gage, an artificial intelligence product which continuously collects biological data from zoo animals and sends assessments and alerts to the zoo caretakers and veterinarians. The target market for this product is large metropolitan zoos. Market research data suggests that the firm can sell 25 systems per year, at a price of $__$5,200,000_____ each. Variable costs are expected to be __$3,000,000___ per unit. Fixed costs for the project will run at $___$500,000________ per year. The project is expected to have a 4 year life.
The firm will need to invest in $100,000,000 of equipment at the start of the project. It will cost $2,000,000 to install the equipment. MACRS 5-year class life depreciation is to be used. In four years, the equipment is expected to have a market value of $5,000,000. Net working capital is expected to increase by $4,000,000 at the start of the project and stay at this level until the end, when it will be recovered. The cost of capital for Zoologic is 16% and the tax rate is 22%.
- Initial cost of equipment
- Installation cost for equipment
- Change in net working capital
- Cost of capital
- Corporate tax rate
- Expected market value of equipment at end of project
- Sales price per unit
- Projected sales units per year
- Projected variable costs per unit
- Projected fixed costs per year
Problem 1: Calculate NPV, IRR, and PI. Base case, Worst case, and Best Case.
Prepare a statement of llc liquidation
: Prepare a statement of LLC liquidation. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets)
|
What operating activities for sunland company
: What operating activities for Sunland Company? Sunland Company reported a net loss of $14400 for the year ended December 31, 2022.
|
How each financial market identified influences
: How each financial market you identified influences the US economy and global economy. are needed to support the answers so please list them.
|
What is the approximate net present value
: The salvage value of the equipment is estimated to be $77,000. If the hurdle rate is 10%, what is the approximate net present value? Ignore income taxes
|
Calculate npv for zoologic
: Calculate NPV, IRR, and PI. Base case, Worst case, and Best Case. ZooLogic, a zoo management company, has asked your team to evaluate proposed capital budgeting
|
How the seller-lessee should account for an asset
: How the seller-lessee should account for an asset under a sale and leaseback transaction where the transfer is in substance a sale according to IFRS 15.
|
How should Nancy Corporation account forfeited payment
: Eddie Corporation forfeits its payment and is entitled to no further consideration. How should Nancy Corporation account for the $100,000 forfeited payment
|
Discuss the rationale for the accounting treatment of gain
: Discuss the rationale for the accounting treatment of gain or loss on revaluation in each method. IAS 16/MFRS 116 Property, plant and equipment allows entities
|
What journal entries will a co record in books on jan first
: What journal entries will A Co record in its books on Jan 1, 2011? On Jan 1, year 11, A Co purchases an additional 25% of B Co. for $250,000.
|