Calculate the annual implications after tax

Assignment Help Accounting Basics
Reference no: EM132695500

A company has is planning to introduce a new product to its existing line. Annual sales are estimated to be 5000 units at a price of $69 per unit. Variable manufacturing costs are expected to be $39 per unit. Incremental fixed manufacturing costs (other than depreciation) are expected to be $30000 and incremental selling expenses to be $35,000 annually.

To build the new product the company must invest $200,000 in special equipment with a change in design every 5 years (no salvage value). Straight line depreciation. Company Tax 30%. All revenue will be paid in cash.

Question A) Calculate the annual implications after tax

Question B) Calculate the annual cash flow consequences over the life of the first model

Question C) Calculate:

1) ARR

2) Payback

3) NPV (15% discount value)

Reference no: EM132695500

Questions Cloud

Name the type of substantive audit procedure : Name the type of substantive audit procedure in EACH of the above and provide ONE key financial statement assertion to which it significantly relates.
How companies today are seeing the value of voluntarily : Explain what affirmative action is and how companies today are seeing the value of voluntarily having diverse workforces. The response must be typed.
What is carla vista inventoriable cost : What is Carla Vista's inventoriable cost for 2018? Freight-out (delivery expense on sales $23,700) Interest on notes payable to vendors $5,000
What employee selection techniques have you found : As a potential employee of an organization, what employee selection techniques have you found that have attracted you further to the company or have been.
Calculate the annual implications after tax : Calculate the annual implications after tax. Calculate the annual cash flow consequences over the life of the first model. Calculate Payback
How many trucks should the boardsign a long term contract : How many trucks should the boardsign a long term contract? Weekly snowfall during is normallydistributed with a mean of 10 inches and a standard deviation of 3
How do identify the essential elements of joint arrangement : How do Identify the essential elements of Joint arrangement. Use examples to elaborate your answer. You can make a diagram or a matrix if needed
What training method do you recommend for bloomingdale : What training method do you recommend for Bloomingdale's? Explain the method and how it meets Bloomingdale's expectations for safety training.
Determine what is mary beth basis residence : Mary Beth purchased her primary residence for $280,000.00. As part of the closing procedure, What is Mary Beth's basis residence?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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