Net income from proposed project

Reference no: EM13140981

Colors and More is considering replacing the equipment it uses to produce crayons. The equipment would cost $1.37 million, have a 12-year life, and lower manufacturing costs by an estimated $304,000 a year. The equipment will be depreciated using straight-line depreciation to a book value of zero. The required rate of return is 15 percent and the tax rate is 28 percent. What is the net income from this proposed project?

Reference no: EM13140981

Questions Cloud

Why do you think home depot is paying out : If you were an investor in Home Depot ’ s stock, would you be unhappy because your dividends represented such a small percentage of the company’s net income? Why do you think Home Depot is paying out?

Sketching the dependence of l versus h on cartesian axes : Sketching the Dependence of l versus h on Cartesian Axes, The distance l from a point at a height h above the Earth's surface to the horizon can be approximated using Pythagoras theorem by the expression:

Dead men''s path essay : compare and contrast The man to send rainclouds and dead men's path essay

How much higher would company first-year net income : How much higher (or lower) would company’s first-year net income have been if absorption costing had been used rather than variable costing? Show computations.

Net income from proposed project : The required rate of return is 15 percent and the tax rate is 28 percent. What is the net income from this proposed project?

Explain what is the conductance of two parallel conductors : What is the relation between the conductance and the capacitance of two parallel conductors immersed in a lossy dielectric medium that has permittivity and conductivity?

What is cost formula for utility expenses : What is cost formula for utility expenses? What is the budgeted utility cost for September 2011 if 31,250 machine hours are projected?

Three studies which utilize an experimental design : Three studies which utilize an experimental design; b) Three studies which utilize a quasi-experimental design; and c) Three studies which utilize a pre-experimental design.

Prepare a schedule of cost of contract : Prepare a schedule of cost of contract services provided (similar to a cost of goods manufactured schedule) for the month. (List amounts from largest to smallest eg 10, 5, 3, 2.)

User Account

All Pages