Calculate the initial investment in the high-powered

Assignment Help Finance Basics
Reference no: EM13288195

If Halley Industries reimburses employees who earn master's degrees and who agree to retain with the firm for an additional 3 years, should the expenses of the tuition reimbursement be categorized as a capital expenditure or an operating expenditure?

Iridium Corp. has spent 3.5 Billion over the past decade developing a satellite-based telecommunications system. It is currently trying to decide whether to spend an additional $350 Million on the project. The form expects that its outlay will finish the project and will generate cash flow of $15 Million per year over the next 5 years. A competitor has offered $450Million for the satellites already in orbit. Classify the firm's outlay as sunk costs or opportunity costs, and specify the relevant cash flows.

Canvas Reproductions, Inc., has spent $4,500 dollars researching a new project. The project requires $20k worth of new machinery, which would cost $3K to install. The company would realize $4K in after-tax proceeds from the sale of old machinery. If Canvas' working capital is unaffected by this project, what is the initial investment amount for this project?

A few years ago, Largo Industries implemented an inventory auditing system at an installed cost of $175K. Since then, it has taken depreciation deductions totaling $124,250. What is the system's current book value? If Largo sold the system for $110K, how much recaptured depreciation would result?

Bryson Sciences is planning to purchase a high-powered microscopy machine for $55K and incur and additional $7,500 in installation expenses. It is replacing similar equip. That can be sold to net $35K resulting in taxes from a gain on the sale of $11,250. Because of this transaction, current assets will increase by $6K and current liabilities will increase by $4K. Calculate the initial investment in the high-powered microscopy machine.

 

Reference no: EM13288195

Questions Cloud

What is the payback period of the ice cream cart : After the three years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the payback period of the ice cream cart.
What is effective resistance of ideal diode in reverse bias : In an ideal diode, once it is conducting in the forward direction, the voltage across the diode remains constant no matterhow the current throught it changes. a) What is the effective resistance of an ideal diode when itis conducting in the forward..
Determine how close are the two charges : A positive charge of 0.800? C is located in a uniform field of 1.20×105 N/C. How close are the two charges
Explain these vectors in terms of the vectors i and j : A 50-lb weight hangs from a string. Find the tensions T1 at 50 degrees and T2 at 30 degrees in the string, and write these vectors in terms of the vectors i and j
Calculate the initial investment in the high-powered : Because of this transaction, current assets will increase by $6K and current liabilities will increase by $4K. Calculate the initial investment in the high-powered microscopy machine.
Determine what is breakdown potential with aluminum foil : Construct aCapacitor You are asked to construct a capacitor having a capacitance near 1 nF and a breakdown potential in excessof 10,000 V. You think of using the sides of a tall Pyrex drinkingglass as a dielectric, lining the inside and outside cu..
What will happen to the value of the mexican peso : If Mexicans go on a spending spree and buy twice as much french perfume, japanese tvs, english sweaters, swiss watches, and italian wine, what will happen to the value of the mexican peso?
What will happen to the u.s. exchange rate : If america auto companies make a breakthrough in automobiles technology and are able to produce a car that gets 60 miles to the gallon, what will happen to the U.S. exchange rate?
What will happen to the value of the indian rupee today : If the indian government unexpectedly announces taht it will be imposing higher tariffs on foreign goods one year from now, what will happen to the value of the indian rupee today?

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the discount factor

At an interest rate of 12 percent, the six-year discount factor is .507. How many dollars is $.507 worth in six years if invested at 12 percent? If the PV of $139 is $125, find the discount factor?

  What estimate can he make of the real rate of return

That annualized rate now stands at 3%. On the basis of the information that Carl has collected, what estimate can he make of the real rate of return?

  How large will your retirement account be in 35 years

how large will your retirement account be in 35 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.

  Explain trend of interest rates

Explain trend of interest rates and describe the trend of interest rates over the last several years

  Determine rate of return

The stock of ABC Corporation is selling for $42 per share. You put in a limit buy order at $37 for one month During the course of the month the stock price declines to $30 each share and then rises to $52 each share.

  Importance of pay structure and workplace satisfaction

What is the importance of pay structure and administration satisfaction in workplace?

  What is the present value of amazon growth opportunities

Amazon has a share price of $373.80 and a cost of equity of 10%. If analysts forecast earnings of $1.91 for the current year, what is the present value of Amazon's growth opportunities?

  What is the rate of return for an investor

What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19?

  What will the price be in five years and in fourteen years

Anton, Inc., just paid a dividend of $2.85 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. Assume investors require a return of 10 percent on this stock.

  What is its economic value added

Net operating profit after taxes (NOPAT) = $700; Total assets = $2,500; Short-term investments = $200; Stockholders' equity = $1,800; Total debt = $700; and Total operating capital = $2,100. ABC's weighted average cost of capital is 10%. What is i..

  What is the estimated loan rate for the five-year bank loan

The yield on a five-year U.S. Treasury note is 1.95 percent, and the three-month U.S. Treasury bill rate is 0.11 percent. Evaluate what is the estimated loan rate for the five-year bank loan?

  Calculating multiple cash flows for a year

Calculating multiple cash flows for a year and determine the amount of each of the annual annuity payment

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