Explain what is the net present value of this project

Reference no: EM13264727

Lakeside Winery is considering expanding its wine-making operations. The expansion will require new equipment costing $509485 that would be depreciated on a straight-line basis to a zero balance over the 4-year life of the project. The estimated after-tax net cash flow from salvage is $121203. The project requires $38514 initially for net working capital, all of which will be recouped at the end of the project. The projected operating cash flow is $198201 each year of the project (except year 0). What is the net present value of this project if the relevant discount rate is 14 percent and the tax rate is 35 percent? Round your answer to the nearest dollar.

Reference no: EM13264727

Questions Cloud

Calculate the tension in the part of the cord : A textbook of mass 1.90kg rests on a frictionless, horizontal surface. A cord attached to the book passes over a pulley whose diameter is 0.150m, What is the tension in the part of the cord attached to the textbook

Explain what is the net present value of this project : What is the net present value of this project if the relevant discount rate is 14 percent and the tax rate is 35 percent? Round your answer to the nearest dollar.

Develop discussion on how wbs could reduce the risks : Develop the discussion on how WBS could reduce the risks in the process of generating and reviewing the requirements and specifications?

What would be modulating signal if same signal generated : A phase modulation (PM) signal s(t) has a modulating wave m(t) = Amcos(2ðfmt) and phase sensitivity kp = 10 radians/V. What would be the modulating signal if the same signal s(t) is generated by frequency modulation (FM) with frequency sensitivity..

Perfectionist intentional communities : Perfectionist intentional communities have a long history here. Take one example of such a group, and discuss how they managed to support themselves, maintain communal life, and deal with the outside

Describe the formation of nitryl fluoride : Consider the formation of nitryl fluoride: 2NO2+F2=2NO2 the reaction is first order in F2 and second order overall. what is the rate law

Design an up-down counter with four states : Design an up / down counter with four states (0, 1, 2, 3) using clocked J-K flip-flops. A control signal x is used as follows: When x = 0 the machine counts forward (up), when x = 1, backward (down).

What is the equipments after-tax net salvage value : Kennedy can sell the used equipment today for $4.1 million, and its tax rate is 40%. What is the equipment's after-tax net salvage value (net cash flow from salvage)? Keep your answer in millions and round to two decimal places (e.g., 57.65 millio..

User Account

All Pages