User Account

All Pages

Calculate the npv of project

Assignment Help Finance Basics
Reference no: EM131752743

Caradoc Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $410,000 is estimated to result in $150,000 in annual pre-tax cost savings. The press falls into Class 8 for CCA purposes (CCA rate of 20 percent per year), and it will have a salvage value at the end of the project of $55,000. The press also requires an initial investment in spare parts inventory of $20,000, along with an additional $3,100 in inventory for each succeeding year of the project. If the shop's tax rate is 35 percent and its discount rate is 9 percent.

Calculate the NPV of this project.

Reference no: EM131752743

Questions Cloud

Describe the aspect of health law : In your opinion, what obligation, if any, do students and working professionals have to impact health law and policy?
What discount rate is the npv just equal : If the discount rate is zero, what is the NPV? If the discount rate is infinite, what is the NPV? At what discount rate is the NPV just equal to zero? IRR
Major categories that help explain structure of financing : Describe the three major categories that help explain the structure of financing. Illustrate how terrorist use these three categories.
Calculate the value of ending inventory for march : Gummo company sells many products. Guzmo is one of its popular items. Using the LIFO assumption, calculate the value of ending inventory for March
Calculate the npv of project : Calculate the NPV of this project.
What is the npv for the project : A project that provides annual cash flows of $17,300 for nine years costs $78,000 today.
What amount of bad debt expense would the company record : Assume Simple Co. had credit sales of $258,000 and cost of goods sold of $158,000 for the period. Simple uses the percentage of credit sales method.
Create a navigation form based on the vertical tabs : Create a Navigation form based on the Vertical Tabs, Left template. Drag and drop the Drivers form onto the first tab of the form.
What equity method adjustment necessary on parent books : Assume that a subsidiary has 10,000 shares of stock outstanding, of which 8,000 shares are owned by the parent. What equity method adjustment will be necessary.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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