User Account

All Pages

Calculate the firm annual cash flows resulting

Assignment Help Financial Accounting
Reference no: EM132958169

Problem 1: Nine Point Industries is trying to decide whether to invest in equipment to manufacture a new product. If the investment project is accepted, sales revenue will increase by $50,000 per year and materials costs will decrease by $22,000 per year. The equipment will cost $448,000 and is depreciable over 9 years using simplified straight line (zero salvage value). The firm has a marginal tax rate of 34%. Calculate the firm's annual cash flows resulting from the new project

Reference no: EM132958169

Questions Cloud

What is the annual total inventory management costs : The carrying cost is $0.19 per post card per year. The ordering cost is $452 per order. What is annual total inventory management costs of post card inventory
What is the initial outlay associated with the project : The old machinery has no book value but can be sold for $10,000. Your firm's marginal tax rate is 34%. What is the initial outlay associated with the project?
Make the journal entry necessary to record the receipt : Make the journal entry necessary to record the receipt of the cash payment assuming that (1) the customer paid the balance on the account five days
What is incremental annual cash flow associated with project : What is the incremental annual cash flow associated with the project? A $51,000 machine with a 9-year class life was purchased 2 years ago
Calculate the firm annual cash flows resulting : Calculate the firm's annual cash flows resulting from the new project. Nine Point Industries is trying to decide whether to invest in equipment to manufacture
How can issue of myopia in management control be resolved : How can the issue of myopia in management control be resolved? You should reference both academic and practitioner sources of information
How much is the revaluation surplus to be recognized : If GHI uses the proportional method, what is the journal entry on Jan. 1, 2023 to record the revaluation? How much is the revaluation surplus to be recognized
What entry should be made on july to record receipt of note : What entry should be made on July 9 to record receipt of the note? On july 9 mifflin company receives a $9000 90 day 10 note from customer Payton.
Determine the effect of the transactions on taxable income : During the 2021 year of assessment the market value of his shares in it dropped, Determine the effect of the transactions on taxable income

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute the earnings per share data that should appear

Assuming a 50% tax rate, compute the earnings per share data that should appear on the financial statements of Cyclop Inc. as of December 31, 2017.

  Prepare the manufacturing for furnishing homes

General administration 30%. Prepare the Manufacturing, Trading, Profit and Loss Account for Furnishing Homes for the period ending June 30, 2015.

  Describe the criteria of accepting capital budgeting

Describe the criteria of accepting/rejecting capital budgeting projects using NPV, IRR, and Payback Period method respectively.

  Evaluate the pro forma income statement

What ethical issues do you believe are present in these procedures and how does the SOX Act address these concerns? You should also discuss judgmental approch.

  Find the present value of the note on the day

Find the present value of the note on the day it was issued. On January 1, 20X1 Goodwin Ltd. bought some inventory from another company

  Calculate the wacc for event flow power co

Calculate the WACC.Debt: 8,000 6.5 percent co upon bond outstanding, $1,000 par value, 20 years to maturity, selling for 92 percent

  How bond transactions would affect the income statement

Pretzel Inc. owns 90% of Soda Corp., Explain how bond transactions would affect the income statement. Be specific on which accounts would be affected.

  What is the present value of winnings

If the appropriate interest rate is 6.3 percent, what is the present value of your winnings? You will receive $1 million today plus another 10 annual payments

  Compute august income before tax under each accounting

Show how each transaction would be handled using the cash basis and the accrual basis. Compute August income (loss) before tax under each accounting method.

  Compute the volume in units and the dollar sales

Compute the volume in units and the dollar sales level necessary to maintain the present profit level, assuming that the maximum price increase is implemented

  Explain the firm financial performance

HI5002 - Finance for Business - Write a report which compares movements in the companies' share price index to the All Ords Index. For instance

  The phoenix kings of united basketball league have a moody

the phoenix kings of united basketball league have a moody center by name of orlando dawkins. dawkins is under contract

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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