System requires initial investment in net working capital

Assignment Help Financial Management
Reference no: EM131835837

Dog Up! Franks is looking at a new sausage system with an installed cost of $445,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $63,000. The sausage system will save the firm $245,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $22,000. If the tax rate is 30 percent and the discount rate is 8 percent, what is the NPV of this project? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV

Reference no: EM131835837

Questions Cloud

Examining the examples of quality initiatives : Examine at least three (3) examples of quality initiatives that could increase patient satisfaction and potentially reduce healthcare cost.
What effective change management practice were use at nissan : What effective change management practices were used at Nissan? What traits and skills can help to explain the successful strategic leadership by Ghosn?
Determining the cornerstone exercise : Applied Overhead and Unit Overhead Cost: Plantwide RatesSeco, Inc., produces two types of clothes dryers
How can the information be used as a source of strategy : Why is it important to look at both the manager and the employee points of view when engaging in human resource planning?
System requires initial investment in net working capital : The sausage system will save the firm $245,000 per year in pretax operating costs, and the system requires initial investment in net working capital of $22,000.
Calculate the prime cost per cleaning : Costs of ServicesJean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service.
How would you advise tracy to approach development : You are familiar with the concept of branding and know that because her company is new, she will have to build a brand from scratch.
Examine ethical dilemmas faced in international companies : Examine ethical dilemmas faced in two international companies and describe the impact to overall organizational health and marketing strategy.
Table of data for comparable companies : Based on the below table of data for comparable companies, calculate an estimate of Haytech's P/E ratio. Please round answer to one decimal place, i.e. 12.3.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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