Determine what is the year one cash flow

Assignment Help Accounting Basics
Reference no: EM132567675

Question 1: Your new employer, Freeman Software, is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33.33%, 44.45%, 14.81%, and 7.41% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 1 cash flow?

Equipment cost (depreciable basis)$65,000

Sales revenues, each year$60,000

Operating costs (excl. deprec.)$25,000

Tax rate25.0%

 

Reference no: EM132567675

Questions Cloud

How to evaluate what is the project npv : A project has an initial cost of $60,000, expected net cash inflows of $15,000 per year for 7 years, and a cost of capital of 11%. What is the project's NPV?
The scope of the definitions of the terms risks : What do you think is the scope of the definitions of the terms risks, threats, and hazards? Explain.
What is the largest challenge facing the us : What is the largest challenge facing the US related to our rapidly aging population? Be specific, drawing on scholarly support from throughout our term together
Applied between the plates of two different capacitors : The same voltage is applied between the plates of two different capacitors. When used with capacitor A
Determine what is the year one cash flow : Determine What is the Year one cash flow? Revenues and other operating costs are expected to be constant over the project's 10-year expected life.
System to lift a bucket of cement of weight : A builder using a pulley system to lift a bucket of cement of weight 150 N exerts a steady force F and pulls 30 m of rope through the system
Paper on exchange rates since 1983 : Paper on EXCHANGE RATES SINCE 1983 - You will need at least three journal references and the textbook. Start your research with the textbook so it always ground
What kind of audit report should the auditor give : What kind of audit report should the auditor give if he found a wrong amount in A/R because this amount was wrongfully entered?
The financial and economic impact of expansion : Compare and contrast the role of finance and economics in the management of health systems in the U.S. and international markets.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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