Phillips industries runs a small manufacturing operation

Reference no: EM13602561

Phillips Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $155,000. Phillips is an ongoing operation, but it expects competitive pressures to erode its real net cash flows at 4 percent per year in perpetuity. The appropriate real discount rate for Phillips is 10 percent. All net cash flows are received at year-end.

Required:
What is the present value of the net cash flows from Phillips's operations? (Do not include the dollar sign ($).Round your answer to 2 decimal places. (e.g., 1,234,567.89))

Reference no: EM13602561

Questions Cloud

Home what is the method to prove a cumulative distribution : what is the method to prove a cumulative distribution function of frechet distribution?complete

Compare contrast and discuss the after tax amounts : compare contrast and discuss the after tax amounts resulting from the interest income and dividend income calculated in

For the past five years herbert has maintained an : for the past five years. herbert has maintained an investment properly accounted for and reported upon in broome

Cnseco oil company has an account titled oil and gas : cnseco oil company has an account titled oil and gas properties. conseco paid 6000000 for oil reserves holding an

Phillips industries runs a small manufacturing operation : phillips industries runs a small manufacturing operation. for this fiscal year it expects real net cash flows of

Happy feet produces sports socks the company has fixed : happy feet produces sports socks. the company has fixed expenses of 150000 and variable expenses of 3.50 per package.

Calculate the average total cost per unit for the 16000 : during may 16000 units of the firms single product were manufactured.raw materials - 83200factory depreciation expense

Compute the npv and eac for both the copiers do not include : office automation inc. must choose between two copiers the xx40 or the rh45. the xx40 costs 1100 and will last for 3

Strauss corporation is making a 70000 investment in : strauss corporation is making a 70000 investment in equipment with a 5-year life. the company uses the straight-line

User Account

All Pages