Solution-The project will require 2000 of net working

The project will require 2000 of net working capital which

Reference no: EM13569609

Acme is considering adding an additional driving range to its facility. The range would cost $76,000, would be depreciated on a straight line basis over its 7-year life, and would have a zero salvage value. The anticipated income from the project is $34,000 a year with $14,400 of that amount being variable cost. The fixed cost would be $16,200. The firm believes that it will earn an additional $13,000 a year from its current operations should the driving range be added. The project will require $2,000 of net working capital, which is recoverable at the end of the project. What is the internal rate of return on this project at a tax rate of 34 percent?

Reference no: EM13569609

Questions Cloud

Current preferred dividend preferred available for common : 200000 shares of no-par common stock. 2. 10000 shares of 100 par 8 percent cumulative preferred stock.on february 1

Cook company estimates that 357300 direct labor hours will : cook company estimates that 357300 direct labor hours will be worked during the coming year 2014 in the packaging

The ackert companys last dividend was 155 the dividend : the ackert companys last dividend was 1.55. the dividend growth rate is expected to be constant at 1.5 for 2 years

What is the purpose of cafr what are the components of cafr : what is the purpose of cafr? what are the components of cafr? why is the federal government not subject to gasb 34? how

The project will require 2000 of net working capital which : acme is considering adding an additional driving range to its facility. the range would cost 76000 would be depreciated

Edgar co has a tax rate of 35 the company sells a product : required for each of the following situations calculate the missing items.a acme inc. sells its products for 45. the

What are some examples of government and not-for-profit : what are some examples of government and not-for-profit organizations? how do proprietary businesses measure success?

All raw materials are considered direct to the : lang products had the following beginning and ending inventory balance for april 20094109 43009raw material inventory

Cash conversion cycle northern manufacturing company found : cash conversion cycle northern manufacturing company found that during the last year it took an average of 47 days to

User Account

All Pages

The project will require 2000 of net working capital which

Reference no: EM13569609

Reference no: EM13569609

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT