The equipment purchased for the project

Assignment Help Financial Management

Reference no: EM132020867

What is the operating cash flow for year 3 of project A that Green Forest Media should use in its NPV analysis of the project? The tax rate is 25 percent. During year 3, project A is expected to have relevant revenue of 78,000 dollars, relevant variable costs of 24,000 dollars, and relevant depreciation of 18,000 dollars. In addition, Green Forest Media would have one source of fixed costs associated with the project A. Yesterday, Green Forest Media signed a deal with Jabari Advertising to develop a marketing campaign. The terms of the deal require Green Forest Media to pay Jabari Advertising either 20,000 dollars in 3 years if project A is pursued or 24,000 dollars in 3 years if project A is not pursued. Finally, the equipment purchased for the project would be sold in 3 years for an expected after-tax cash flow of 6,000 dollars.

Reference no: EM132020867

Questions Cloud

Organisational structure and organisational design : What is the difference between organisational structure and organisational design? Outline the six elements of organisational design.

Discuss the key factors in the international environment : Discuss the key factors in the international environment that managers of emerging global organisations look to as threats to their international operations.

Does jody have gross income : Five years later she needed cash so she sold the painting for $1,000, its fair market value at the time of sale. Does Jody have gross income

What is the current status of ikea : What is the current status of IKEA's plans to enter the Indian market? Site your source.

The equipment purchased for the project : Finally, the equipment purchased for the project would be sold in 3 years for an expected after-tax cash flow of 6,000 dollars.

What things about the class did you like : What things about the class did you like, what things could you do without, and please make some suggestions for future online classes.

Why does industrial conflict arise : Also how a grievance procedure might assist in individual conflict resolution and industrial conflict resolution, could you explain it?

Calculate the yield to maturity on the bond : Assuming semi-annual compounding, calculate the yield to maturity on the bond.

Strategic process in organizations : Reflect on how you think risk management contributes to conducting business more effectively.

User Account

All Pages