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!
Seco Dame Enterprises (SDE) acquired a robotic saw six years ago at a cost of $10 million. The saw was depreciated under the old ACRS rules to its current book value of $0. Actual salvage value today is estimated to be $2 million. SDE's average tax rate is 30 percent, and its marginal tax rate is 40 percent. The weighted cost of capital for SDE is 15 percent.
A new robotic saw will cost $15 million. It will be depreciated under MACRS rules for a 7-year class asset. If SDE acquires the new saw, it estimates that its net working capital investment will decline, due to the reduced need to carry inventories of spare parts for this more reliable machine. Net working capital should decline from a current level of $1 million to a new level of $500,000 as a result of this purchase.
a. Calculate the net investment required to acquire the new saw.
b. The new saw is expected to reduce operating costs (exclusive of depreciation) for SDE by $800,000 per year over the asset's expected 10-year life. Also, the increased productivity of the new saw is expected to increase SDE's revenue by $2 million per year. Salvage value at the end of 10 years is expected to be $0. Calculate the annual net cash flows for this investment.
c. Compute the NPV for this project.
Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.
In this essay, we are going to discuss the issues of financial management in a non-profit organisation.
Evaluate venture's present value, cash and surplus cash and basic venture capital.
This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?
Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.
In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).
Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.
Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.
How much will you have left over each half year if you adopt the latter course of action?
A quoted company is considering several long-term sources of finance for expansion into new foreign markets.
This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.
This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.
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