The company has some unused equipment that it currently

Assignment Help Finance Basics
Reference no: EM13483548

Sailcloth & More currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. The company owns land beside its current manufacturing facility that could be used for the expansion. The company bought this land 5 years ago at a cost of $319,000. At the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. Today, the land is valued at $295,000. The company has some unused equipment that it currently owns valued at $38,000. This equipment could be used for producing awnings if $12,000 is spent for equipment modifications. Other equipment costing $490,000 will also be required. What is the amount of the initial cash flow for this expansion project?

Reference no: EM13483548

Questions Cloud

Management estimates that 5 of credit sales are not : 1.katie enterprises reports the year-end information from 20x8 as follows sales 70000 units 560000 cost of goods sold
Satellite products inc owns two subsidiaries saturn systems : satellite products inc. owns two subsidiaries saturn systems and neptune audio. saturn supplies printed circuit boards
Sather company had accounts receivable of 64100 and : sather company had accounts receivable of 64100 and allowance for doubtful accounts of 4300. sather company prepares
Monroe inc is evaluating a project the company uses a 138 : 1.quick sale real estate company is planning to invest in a new development. the cost of the project will be 23 million
The company has some unused equipment that it currently : sailcloth amp more currently produces boat sails and is considering expanding its operations to include awnings for
Ashley has received a large inheritance from her : ashley has received a large inheritance from her grandmother and wants to put aside enough money to pay for her childs
The loan of 15 000 is being repaid by 10 monthly : the loan of 15 000 is being repaid by 10 monthly installments with the first 5 payments of x and the last 5 payments of
Imagine you are the cfo of ibm you have been successful : imagine you are the cfo of ibm. you have been successful over the years but are now concerned about how many sources of
The bank receives interest on the loan at 10 convertible : mr.jones borrows 25 000 from bank b for 10 years. he makes semiannual payments of 2 000. the bank receives interest on

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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