Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Futura limited is considering a capital project in which the following information is available.
The investment outlay on the project will be Rs 200 million. This consists of rs 150 million on plant and machinery and Rs 50 million on net working capital. The entire outlay will be incurred at the beginning.
The life of the projects is expected to be 7 years. At the end of 7 years, fixed assets will fetch a net salvage value of Rs 48 million whereas net working capital will be liquidated at its book value.
The project is expected to increase the revenues of the firm by Rs 250 million per year. The increase in costs on account of the project is expected to be Rs 100 million per year. (This includes all items of cost other than depreciation, interest, and tax.) The tax rate is 30%.
Plant and Machinery will be depreciated at the rate of 25% per year as per the written down method.
Required -
1. Estimate the post-tax cash flows of the project.
2. Calculate IRR of the project.
A piece of equipment costs $38,000, and is expected to generate $8,200 of annual cash revenues and $1,800 of annual cash expenses. The disposal value at the end of the estimated 8-year life is $2,000. Ignoring income taxes, the payback period is:
you are saving to buy a 191000 house. there are two competing banks in your area both offering certificates of deposit
Brian and Sandy are forming a partnership. Brian will invest a truck with a book value of $10,000 and a fair value of $14,000. Sandy will invest a building with a book value of $30,000 and a fair value of $42,000 with a mortgage of $15,000. What amou..
Marketing department estimated that number of tickets sold each time would drop by 30%. Should DMC increase the ticket price? Explain.
Assume Cisco purchased all the AFS investments this year. How much was net income influenced by AFS investments this year?
Journalize and post the July transactions.Paid $1,000 cash on amount owed on truck and $800 on amount owed on cleaning supplies.
Explain when a company makes a sale to a customer who uses a credit card such as Visa or Master Card, the company? recognizes revenue for full amount of sale.
Describe the current International Monetary System. How does the current system differ from the system that was in place prior to August 1971?
The following facts pertain to a noncancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Inception date: May 1, 2014 Annual lease payment due at the beginning of each year, beginning with May 1, 2014 $18,601.34. Entry..
What are the factors you should consider in making this decision if your household income is $6,000, and your monthly expenses of $2, 500.
Daguio Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $248,800. At the end of the year, actual direct labor-hours for the year were 16,800 hours, ma..
After the copper is extracted in approximately six years, Schefter is obligated to restore the land to its original condition, including constructing a park. The company’s controller has provided the following three cash flow possibilities for the re..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd