Develop a five-year cash flow estimate for the proposal

Assignment Help HR Management

Reference no: EM132904592

Question

Auburn Concrete Inc. is considering the purchase of a new concrete mixer to replace an inefficient older model that is completely worn out. If purchased, the new machine will cost $90,000 and is expected to generate savings of $40,000 per year for five years at the end of which it will be sold for $20,000. The mixer will be depreciated to a zero salvage value over three years using the straight-line method. Develop a five-year cash flow estimate for the proposal. Auburn's marginal tax rate is 28%. Enter your answer in thousands. For example, an answer of $1 thousand should be entered as 1, not 1,000. Round your intermediate calculations and final answer to the nearest thousand dollars. Use a minus sign to indicate negative cash flows or decreases in cash, if required.
Year    Cash Flow ($000)
0                $
1    $
2                $
3    $
4    $
5                $

Reference no: EM132904592

Questions Cloud

What the effect of the error in the current period is to : What the effect of the error in the current period is to? An error in the physical count of goods on hand at the end of the current period resulted in a $2,500

Differentiating in terms of the risks and costs borne : Differentiating in terms of the risks and costs borne by the exporter if the Incoterm rule chosen was a Tokyo CIF.

What is the likely effect on the firm financial statements : After a brief discussion with Ralph's chief accountant, the entire $2,500 receivable. What is the likely effect on the firm's FY2020 Financial Statements.

Case Study - Coral Systems Inc : Case Study - Coral Systems, Inc. - Describe Coral Systems' "business model" in terms of revenues, profits, and cash flows

Develop a five-year cash flow estimate for the proposal : Develop a five-year cash flow estimate for the proposal. Auburn's marginal tax rate is 28%. Enter your answer in thousands.

Detailing the nature of the csr issue : (i) Detailing the nature of the CSR issue. Brief explain details on what happened, when it happened, why it happened.

How should walter account for sale on the fiscal year-end : As a principled person with commitment to following GAAP, how should Walter account for the sale on the fiscal year-end financial statements.

Analyze the advantages and disadvantages of asset sale : You are the CEO and Chairman of SmallCo (with an accounting background). Analyze the advantages and disadvantages of asset sale

Identify what appear to be the most appropriate solutions : Identify what appear to be the most appropriate solutions to the problems identified & give reasons for your choice. Explain why other solutions have been

User Account

All Pages