Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The South Seas Navigation Company is considering buying new sextants for its celestial navigation school. The sextants cost $34,000 and are expected to generate annual net cash flows before taxes of $7,500 per year for 9 years. The sextants will be depreciated using straight-line depreciation for 10 years; however they will be sold in 9 years for $6,000. The corporate tax rate is 34%. The required rate of return for this project is 12%. If South Seas decides to buy the new sextants, it will sell its old sextants, which have a book value of $4,000 and originally cost $10,000, for $8,000.
a. Calculate the initial investment, annual operating cash flows, and terminal value.
b. Calculate the project's NPV
c. Calculate the project's IRR.
d. Calculate the project's MIRR.
Suppose you sell a fixed asset for $91,000 when it's book value is $112,000. If your company's marginal tax rate is 35%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?
Project grow will result in an increase of 5,000 units per year at a sale price of $ 11. each (assume 0% inflation). The additional sales will generate additional operating expenditures of 9. Per unit plus 3,000 in fixed operating cost. What is the i..
Why is $100 today worth more to you than $100 in one year’s time even if the rate of inflation is zero? If interest rates rise, would you rather be holding a 30-year Treasury bond or a 90-day Treasury bill? Please explain. What is the yield to maturi..
What industry is your company part of? Who are some of the company's primary competitors? What doe the future look like for this industry - The current ratio indicates the extent to which current liabilities are covered by those assets that are exp..
St. Benedict’s Hospital has three support departments and four patient services departments. Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for General Administration and Financial Services is patien..
Royalty payments arrive once per year, starting one year from now. In the first year, the author expects $400,000 in royalties, followed by $300,000, then $100,000, then $10,000 in the three subsequent years.
Your firm has an average collection period of 20 days. Current practice is to factor all receivables immediately at a 1.00 percent discount.
If an investment will be doubled in 8 years at a force of interest δ, in how many years will an investment be tripled at a nominal rate of interest numerically equal to δ and convertible once every three years?
Review current AASB framework which is also known as "Framework for the Preparation and Presentation of Financial Statements" and provide a critical analysis of different measurement bases.
Wolfson Corporation has decided to purchase a new machine that costs $3.2 million. The machine will be depreciated on a straight-line basis and will be worthless after four years. The corporate tax rate is 35 percent. Should Wolfson lease the machine..
Office Max is a fast growing supplier of office products. Analysts project the following cash flows (FCFs) during the next 5 years, after which FCF is expected to grow at a constant rate of 7 percent. Office Max’s cost of capital (WACC) is 11%. What..
You deposit today $600 dollars in an account that pays 1.4 percent per year. For the next few years you will keep making deposits 5.1 percent larger than the previous one. What will be the balance on the account after 8 deposits?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd