Gateway communications is considering a project with an

Assignment Help Finance Basics
Reference no: EM13620634

Gateway Communications is considering a project with an initial fixed asset cost of $2.46 million which will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $300,000. The project will not directly produce any sales but will reduce operating costs by $725,000 a year. The tax rate is 35 percent. The project will require $45,000 of inventory which will be recouped when the project ends. Should this project be implemented if the firm requires a 14 percent rate of return? Why or why not?

Reference no: EM13620634

Questions Cloud

Phone home inc is considering a new 6-year expansion : phone home inc. is considering a new 6-year expansion project that requires an initial fixed asset investment of 5.876
Augmented lagrangian method embedding technique : augmented lagrangian method embedding technique amalgamated formulation what are the differences? what are the benefits
To mix for a 30 minute gel time at 77 geg you would : we build a warter filter box for koi fish ponds using the vinyl ester resin. the box dimension at the base are 36 l x
Two long straight parallel wires are separated by a : two long straight parallel wires are separated by a distance of 20.1 cm. each wire carries a current of 26.1 a in the
Gateway communications is considering a project with an : gateway communications is considering a project with an initial fixed asset cost of 2.46 million which will be
Julie carries an 80 kg suitcase as she walks 18 m along a : julie carries an 8.0 kg suitcase as she walks 18 m along a horizontal walkway to her hotel room at constant speed of
Assuming the compression and expansion processes are : the inlet velocity pressure and temperature at the compressor for a turbo-jet engine are 275 feet per second 7 psia and
A 90 battery supplies a 20 current to a circuit for 48 how : a 9.0 battery supplies a 2.0 current to a circuit for 4.8. how much charge has been transferred from the negative to
Given the following profit table determine the minimax : given the following profit table determine the minimax regret decision.states of

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss the effectiveness of the campaign

Excluding the supermarket deals, choose a product and marketing campaign that targets buyers in a down economy. Discuss the effectiveness of the campaign and how you might improve upon it. Be sure to include your thoughts on competition and differ..

  What percentage of the workers receive wages between s1375

a company pays its employees an average wage of 15.90 an hour with a standard deviation of 1.50. if the wages are

  What is the balance in the account at the end

You have been depositing money at the end of each year into an account drawing 8% interest. what is the balance in the account at the end of year four if you deposited the following amounts? Year End of year deposit 1 $350 2 $500 3 $725 4 $400

  Consider the following annual period-by-period returns for

consider the following annual period-by-period returns for an open-ended commingled real estate fund cref an investment

  What type of bond provide a tax advantage to corporations

What type of bond provide a tax advantage to corporations by being deducted primarily in periods where taxes are likely to be paid. (also they have an advantage of not being in default if a coupon payment is omitted due to a lack of earnings.

  Calculate the excersie value of the firm warrants

Calculate the excersie value of the firm's warrants if the common sells at each of the following prices.

  Answer true or false to the following statements with a

answer true or false to the following statements with a short explanation. a. a stock that sells for less than book

  Simple interest and compound interest

Illustrate out the difference between simple interest and compound interest? What are some examples of where might each be employed?

  Determine category of financial statement ratios

A potential creditor's judgment about granting credit would be most influenced by the potential customer's, Which of the following is not a category of financial statement ratios?

  Calculate expected rate of return and standard deviation

A project that expenses $3,000 to install will provide annual cash flows of $800 for each of the next six years. Is this project worth pursuing if the discount rate is 10%?

  Discuss on efficient markets hypothesis

Discuss on efficient markets hypothesis thus we can simply pick mutual funds at random Is this statement true or false

  Find the stock price at the end of three years

Suppose you are planning an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $2 a share at the end of the year (D1 = $2.00).

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