Relevant cash flow when deter- mining incremental cash flows

Assignment Help Financial Management
Reference no: EM13975284

Which of the following is not considered a relevant cash flow when deter- mining incremental cash flows for a new project?

a) Shipping and installation costs associated with the new project.

b) The use of floor space that is currently unused but available for any new project.

c) The cost of a consultant's report concerning the feasibility of the project that was completed (and paid for) in the previous year.

d) An increase in current assets (e.g., inventories) that would result if the project is undertaken.

e) Revenues from an existing service that would be lost if the new project was initiated.

Reference no: EM13975284

Questions Cloud

The market value of fixed assets : Market Values and Book Values Klingon Widgets, Inc. purchased new cloaking machinery 3 years ago for $6 million. The machinery can be sold to the Romulans today for $4.8 million. What is the book value of Klingon’s total assets today? What is the sum..
Calculate the mean absolute deviation : a. Determine the mean, median, range, and midrange. b. Calculate the mean absolute deviation. c. Calculate the standard deviation and variance.
More and more state legislatures are enacting mandatory : More and more state legislatures are enacting mandatory seatbelt laws for drivers of automobiles. Many of the statutes state that if an occupant of the car (driver or otherwise) is not wearing a seatbelt at the time of an automobile accident, then th..
Calculate the mean absolute deviation : For a sample of five different years from the period 1960 through 2007, it is found that U.S. work stoppages involving at least 1000 workers occurred 268 times in one of these years, with 424, 235, 145, and 44 work stoppages in the other four. Sou..
Relevant cash flow when deter- mining incremental cash flows : Which of the following is not considered a relevant cash flow when deter- mining incremental cash flows for a new project?
China, the united states and other european : Iran is dealing with China, the United States and other European countries regarding nuclear bomb development in Iran in 2015. Is this agreement a treaty which requires US Congress participation or is this agreement an Executive order decision
Nature of a projects component cash flow distributions : The nature of a project’s component cash flow distributions and their correlation with one another determine a project’s
Analyze the structure of the federal reserve banks : Analyze the structure of the Federal Reserve Banks and Board of Governors, and make at least one recommendation for improvement. Explain your rationale.
Calculate the amount of capital gain : Capital gains taxes Perkins Manufacturing is considering the sale of two nondepreciable assets, X and Y. Asset X was purchased for $2,000 and will be sold today for $2,250. Asset Y was purchased for $30,000 and will be sold today for $35,000. The fir..

Reviews

Write a Review

Financial Management Questions & Answers

  Determining the firms appropriate debt-to-equity ratio

What are the 4 main criteria that a firm should consider when determining the firm’s appropriate debt-to-equity ratio? Is the ratio likely to change over time? How?

  Factors of production do not flow freely between countries

Which of the following factors of production DO NOT flow freely between countries?

  Find the duration to estimate the new price of the bond

Consider a 5.4 percent coupon bond with nine years to maturity and a current price of $1,055.40. Suppose the yield on the bond suddenly increases by 2 percent. Find the duration to estimate the new price of the bond. And calculate the new bond price.

  Rate of return and make no additional contributions

You have just made your first $3,000 contribution to your retirement account. Assuming you earn an 9 percent rate of return and make no additional contributions. What will your account be worth when you retire in 45 years?

  How much money must initially be deposited

How much money must initially be deposited into the account to provide 20 end-of year with drawls if the with drawl is $1750 and each subsequent with drawl increases by $250? The accounts earns interest at the rate of 7.25% per year, compounded conti..

  How corporate valuation model and adjusted present value

Explain how the corporate valuation model and the adjusted present value (APV) method are used to estimate the value of a target company. If someone did a complete and careful analysis of a given target using both of these methods, would they produce..

  Controlling interest in instapower

On February 18, 2014, Q-Car Corporation announced its plan to acquire 90% of the outstanding 1,000,000 shares InstaPower Corporation’s common stock in a business combination later in the year following regulatory approval. What is the total considera..

  Explain the benefit of using flexible budgets

Prepare a flexible budget for 20,000, 22,500, and 25,000 units of activity and was Centron's experience in the quarter cited better or worse than anticipated? Prepare an appropriate performance report and explain your answer.

  One way to calculate a stocks beta

One way to calculate a stock's beta is to

  What is the required monthly payment

What is the required monthly payment on a $530,000.00 mortgage. Assume a standard mortgage (360 months) with monthly payments. Use a nominal rate (monthly compounding) of 6.00%.

  What is the effective annual rate on loan with interest rate

In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $24,000 and the interest rate is 21.75%, the borrower "pays" 0.2175 × $24,000 = $5,220 immediately, thereby receiving net funds of $18,780 ..

  Liquidate some equipment that is being replaced

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $14 million, of which 80% has been depreciated. The used equipment can be sold today for $3.5 million, and its tax rate is 30%. What is the equipment'..

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