Compute the projects after-tax cash flow compute and

Assignment Help Accounting Basics
Reference no: EM13589743

The following is a simplified project annual income statement for Ma & Pa Incorporated for each year of an eight-year project. Its upfront cost is $2,000. Its cast of capital is 12 percent.
Sales
                                 $925.00
less cash expenses       310.00
less depreciation            250.00
Earnings before taxes   $365.00
Less taxes (at 35%)       127.75
Net income                   $237.25

a. Compute the project's after-tax cash flow.
b. Compute and interpret the project's NPV IRA, profitability index, and payback period.

Reference no: EM13589743

Questions Cloud

The company used 8000 yards of material in order to make : the company used 8000 yards of material in order to make 2500 dresses in april. the company purchased 8200 yards at
Find project xs initial cash outlay find the projects : challenge problem annual savings from project x include a reduction of ten clerical employees with annual salaries of
Nations shipping determined the rate to apply overhead : nations shipping determined the rate to apply overhead based on direct labor hours would be 8.40 and based on machine
The equilibrium pressure of h2 over solid uranium and : the equilibrium pressure of h2 over solid uranium and uranium hydride uh3 at 500 k is 139 pa. calculate the standard
Compute the projects after-tax cash flow compute and : the following is a simplified project annual income statement for ma amp pa incorporated for each year of an
Earnings before depreciation are expected to be 20000 in : the brassy fin pet shop is considering an expansion. construction will cost 90000 and will be depreciated to zero
The blending department began the period with 45000 units : the blending department began the period with 45000 units. during the period the department received another 30000
In niobium nb metal the valence orbitals are the 5s 4d and : in niobium nb metal the valence orbitals are the 5s 4d and 5p orbitals. if the bonding in nb metal is described used
Use the information in problem 10 to do the following a : a machine can be purchased for 10500 including transportanottion charges but installation costs will require 1500

Reviews

Write a Review

Accounting Basics Questions & Answers

  Potential manipulation by managers

Explain how adjusting entries provide for potential manipulation by managers. In addition, discuss how compensation arrangements may result in incentives for such manipulation to occur.

  The cost function of a company is c001x square2x25 where

the cost function of a company is c0.01x square2x25 where xis the produced unit of its price is rs.30. the profit

  Prepare a multiple-step income statement

Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Aeito's Plumbing Supplies for the year ended December 31, 20.

  Total annual cost-unit cost of fixed-variable costs

Identify which cost item above is fixed and variable and why. What is the cost per unit of each? Suppose we increased our sales volume to 6000 units and then to 8000 units the following year (and are still within the relevant range), what would be..

  Common method of capital budgeting

Which of the following is not a common method of capital budgeting?

  Additional shares of common stock

How many additional shares of common stock could Carnival Corporation sell? How are the shares that have not yet been issued included in the company's balance sheet? Do they represent an asset of the company?

  Investment interest expense limitation

Identify the structural similarity between the investment interest expense limitation, the capital loss limitation, and the passive activity loss limitation.

  Andree is about to graduate college with a management

andree is about to graduate college with a management degree. she has been offered a job as a sales representative for

  Decision variables for the mbi corporation problem

Identify the decision variables for the MBI Corporation problem. Identify the objective for the above problem, and write a formula for it. Identify the constraints for the above problem and write the formula for each

  Find invested in capital assets net of related debt

On the following facts about an Enterprise Fund for a utility operation: Invested in capital assets, net of related debt, would be?

  Daniel chan and jhovanni fox opened icu optical seven years

daniel chan and jhovanni fox opened icu optical seven years ago with the goal of producing fashionable and affordable

  After graduation you plan to work for dynamo corporation

after graduation you plan to work for dynamo corporation for 12 years and then start your own business. you expect to

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