What are annual operating cash flows and terminal value

Assignment Help Finance Basics
Reference no: EM132484370

Davie Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $45,000 and will be depreciated according to the 3-year MACRS schedule (33.33% yr 1, 44.45% yr 2, 14.81% yr 3, 7.41% yr 4). It will be sold for scrap metal after 3 years for $2050. The annual sales are 18, 500, the annual COGS is $3500, and the firm's tax rate is 30%. What are annual operating cash flows and terminal value? You do not have to calculate NPV or IRR, just give me OCF for each year and TV.

Reference no: EM132484370

Questions Cloud

How much jane will have to save each year : How much Jane will have to save each year (assuming she waits N years to start saving) to have $250,000 in her account when she is 60.
Required rate of return-expected rate of return for stock : What is the required rate of return and expected rate of return for the stock? Should you buy it; why or why not?
Research and analyze the role of accounting information : FIA 6001 Managerial Accounting - Demonstrate the knowledge of concepts, tools, practices and ethical issues in management accounting
Determine what was amount of expenses reported on calloway : The financial statements of Calloway Company, Determine what was amount of expenses reported on Calloways income statement for the current year?
What are annual operating cash flows and terminal value : What are annual operating cash flows and terminal value? You do not have to calculate NPV or IRR, just give me OCF for each year and TV.
Identifying various pillars of ethical practice : This project will be a paper that should be the foundation of your ethical journey. It will include identifying and expanding on various pillars of ethical.
What treatment modalities are you open to for your ptsd : Can you help me understand why you do not want to stop taxing paroxetine and start another medication? What additional treatment modalities are you open to for.
What is the balance in the accumulated depreciation : What is the balance in the accumulated depreciation as of 31 December 20X2, if MC Ltd uses the asset 5,500 hours in 20X1 and 4,500 hours in 20X2?
Computed at the time of each withdrawal : Compute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units only

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