Equipment cost

Assignment Help Finance Basics
Reference no: EM13688235

Clemson Software is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's Year 1 cash flow?

Equipment cost (depreciable basis) $65,000

Straight-line depreciation rate 33.333%

Sales revenues, each year $60,000

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

Tax rate 35.0%

Reference no: EM13688235

Questions Cloud

What is the heat-loss rate through the slab : A 10 m x 14 m house is built on a 12 cm-thick concrete slab. What is the heat-loss rate through the slab if the ground temperature is 5 degrees C while the interior of the house is 22 degrees C
Estimate the effect of synergies on enterprise value : Identify the synergies and conduct a sensitivity analysis to estimate the effect of synergies on enterprise value
Determine how fast must an alpha particle : How fast must an alpha particle (m = 6.68×1027 kg, q = 3.20×1019 C) travel perpendicularly to the Earth's magnetic field in a laboratory (B = 5.02×105 T) for it to describe a circular path of radius 2.34 cm
What was the price of the stock following the split : What was the price of the stock following the split
Equipment cost : Equipment cost
Find the magnitude of the force per unit length : Two parallel wires are separated by a distance of 5.00 cm. Each wire carries a current of 2.70 A in the same direction. Find the magnitude of the force per unit length exerted by one of the wires on the other. Is the force attractive or repulsive
What are the characteristics of a good algorithm : What is an algorithm? What are the characteristics of a good algorithm and what do you mean by complexity of an algorithm? Explain the meaning of worst case analysis and best case analysis with an example.
Cultural values and international differences in business : Cultural Values and International Differences in Business Ethics
What is the magnetic field strength : A solid wire with a radius of 3.00 mm carries a current of 0.0530 A. Assume the current is uniformly distributed in the wire. What is the magnetic field strength at the center of the wire

Reviews

Write a Review

Finance Basics Questions & Answers

  Choices to replace with two alternatives best option

Choices to replace with two alternatives Choose the best option to replace and fully depreciated sound mixer

  Calculate the price of bond if ytm is given

Valuing Bonds: Syberboard has issued a bond with the following characteristics:

  What is the effective borrowing cost

What is the APR on this loan? c) What is the effective borrowing cost if the borrower anticipates paying off the loan at the end of five years?

  You investes 8000 in two funds paying 2 and 5 annual

you investes 8000 in two funds paying 2 and 5 annual interest. at the end of the year the interest from the 5

  Why does capital structure matter

What do we mean by "Optimal Capital Structure" and what's the relationship between Optimal Capital Structure and Cost of Capital?

  What are the assumptions implied by the npv and irr

Consider the following Investment: Time Cash Flow 1 $1300 2 $2400 3 $1100 4 $1200 The investment outlay is $6000. The required return is 10.75%. Required payback period is 18 months.

  What are the benefits of collecting early and how do

what are the benefits of collecting early and how do companies attempt to do

  Interest rate risk is related to its maturity.

Describe how and why a bond's interest rate risk is related to its maturity.

  Complete the balance sheet and sales information

Complete the balance sheet and sales information in the table that follows for Hoffmeister Industries using the following financial data.

  Mergers and acquisitions has become part of the corporate

backgroundmergers and acquisitions has become part of the corporate financing world. every day wall street investment

  How much less could you have deposited last year

How much less could you have deposited last year if you could have earned a fixed rate of 6.5 percent and still have the same amount as you currently will when you retire 38 years from today?

  The par value of the bond is 1000 what is the value of the

value of bond. trooper corporation has a bond issue with a coupon rate of 10 percent per year and 5 years remaining

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