What are the net cash flow each year

Assignment Help Accounting Basics
Reference no: EM132886670

Question - H. Cochran, Inc., is considering a new 3 yr expansion project that requires an initial fixed asset investment of $2,250,000.The fixed asset will be depreciated straight-line to zero over its 3 year tax life. The project is estimated to generate $2,370,000in annual sales, with costs of $1,410,000. The project requires an initial investment in net working capital of $172,000 and fixed asset will have a market value of $207,000 at the end of the project. Assume that the tax rate is 22% and the required returnon the project is 11%.

a. What are the net cash flow each year?

b. What is the NPV of the project?

Reference no: EM132886670

Questions Cloud

What was the data and evidence used by the author : What was the data and evidence used by the author to support his arguments being made? Was the article it informative why or why not?
What is the critical issue in interpreting the nature : What is the critical issue in interpreting the nature of this transaction? How does interpretation of the critical issue lead to the two different viewpoints
What research have you conducted and what have you learned : What research have you conducted and what have you learned? What are the insights that you relied on and how did you arrive at them?
Pick one election where the outcome of the popular vote : Pick one election where the outcome of the popular vote and the electoral college vote differed to create an argument in favor of or opposed to the use
What are the net cash flow each year : Assume that the tax rate is 22% and the required returnon the project is 11%. What are the net cash flow each year
Calculate the relevant cost per unit for the special order : Sunny offered to buy a batch of 1,000 blankets for $63 per unit, calculate the relevant cost per unit for the special order. Should Rooney accept special order
What know about the politics : How the US federal government handled the AIDS crisis in America in the 1980's, how would you compare it to how the federal government in 2020 handled
Which do think is better-leave well enough alone or tear : Which do you think is better: leave well enough alone or tear it down to the studs and make it quick and easy to pass laws? Be sure to use examples
Describe the dimensions of competency : Describe the dimensions of competency. Use approximately 20-50 words to complete this entire question and Provide an example of how you would cover

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine what are the total assets now

Pendleton Hospital had assets of $29,000, Liabilities of $12,000, and net assets of $17,000 on March 1, 2016. Subsequently, the following transactions were.

  Fundamental accounting principles

The ledger of Salizar Company at the end of the current year shows Accounts Receivable $110,000, Sales $840,000, and Sales Returns and Allowances $40,000.

  What should be recorded as the carrying value

The prevailing rate of interest for a note of this type on January 2, 2019 was 10%. What should be recorded as the carrying value of the note receivable

  Initially start a service or once the service is complete

Initially start a service or once the service is complete?

  Determine the incremental effect on profit

Prepare an incremental analysis in good form to determine the incremental effect on profit of discontinuing the snail extraction tool line

  Write journal entries to record such transactions

The remaining economic years being 20 years and estimated fair value of the building is $2m. Write journal entries to record such transactions

  Prepare the selling and administrative expense budget

The sales budget shows 2, 200 units are planned to be sold in November. Prepare the selling and administrative expense budget for November.

  What is the total cost of job

Serial Problem Business Solutions - What is the total cost of Job 615 if Business Solutions applies overhead at 50% of direct labor cost

  Explain about the recording of the stock dividend

Explain about the recording of the stock dividend? The Mulieri Company was authorized to issue 100,000 shares of common stock

  Compute the OTP

Compute the OTP - Supplies for cockpit operations (net of vat) 750,000 and Supplies for restaurant operations (invoice amount) 224,000

  What would you do if you were frank

Frank, controller for Book Industries, was reviewing production cost reports for the year. What would you do if you were Frank

  Prepare an income statement and balance sheet

Sports Clothing is a merchandising business that sells sports clothing to college students. Prepare an income statement and balance sheet

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