Determine the estimated after-tax cash flow from project

Assignment Help Microeconomics

Reference no: EM132168874

Question: Tampa Electric Company (TECO) is planning a major upgrade in its computerized demand management system. In order to accommodate this upgrade, a building will be constructed on land already owned by the company. The building is estimated to cost $1.8M and will be opened in August 2010. The computer equipment for the building will cost $2.75M, and all office equipment will cost $225,000. Annual expenses for operating this facility (labor, materials, insurance, energy, etc.) are expected to be $325,000 during 2010. Use of the new demand management system is expected to decrease fuel and other costs for the company by $1.8M in the first year (2010). If the company expects to earn 9% on its investments, is in the 35% tax bracket, and uses a 20-year planning horizon, determine the estimated after-tax cash flow from this project in 2010.

Reference no: EM132168874

Questions Cloud

Would you recommend that mid-america purchase the barge : Mid-America Shipping is considering purchasing a new barge for use on its Ohio River routes. The new barge will cost $13.2 million and is expected to generate.

What is the disease burden of tb in australia? : What is the disease burden of TB in Australia and How is pulmonary TB transmitted & how infectious is it - What procedures have been taken for the identified

Research corporate social responsibility at bp : Does the organization consider CSR as obligatory or do they seek opportunities for CSR? In other words, is the organization reactive or proactive?

Solve the problem of christopher using given information : Christopher wants to add a solar photovoltaic system to his home. He plans to install a 2-kW system and has received a quote from an installer.

Determine the estimated after-tax cash flow from project : Tampa Electric Company (TECO) is planning a major upgrade in its computerized demand management system. In order to accommodate this upgrade.

Describe the challenges in a multiple-stakeholder process : Does each group have equal weight throughout the program development process? When should each be brought into the discussion?

Determine investor after-tax rate of return on investment : An investor bought a racehorse for $1 million. The horse's average winnings were $700,000 per year and expenses averaged $200,000 per year.

Identify and research at least two examples of companies : Management at Top Shelf has determined that the company doesn't need another top-down singularly focused recycling program.

Review problem of thge fleet fleet car company : Fleet Fleet rental car company purchased 10 new cars for a total cost of $180,000. The cars generated income of $150,000 per year and incurred operating.

User Account

All Pages