What are the net cash flows for the following 3 years

Assignment Help Finance Basics

Reference no: EM13280557

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.49 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,280,000 in annual sales, with costs of $1,270,000. The project requires an initial investment in net working capital of $163,000, and the fixed asset will have a market value of $188,000 at the end of the project. Assume that the tax rate is 30 percent and the required return on the project is 8 percent.

What are the net cash flows for the following 3 years starting with 0?

What is the NPV of the project?

Reference no: EM13280557

Questions Cloud

Computing the limiting reactant and excess reactant : calculate the limiting reactant and excess reactant for the synthesis of methyl Orange. I'm not sure what reagents to use for my calculations

What are option market value and the price of the stock : The exercise price on one of Flanagan Company's options is $15, its exrcise value is $22, and its time value is $5. What are the option's market value and the price of the stock?

What is the speed of the vehicles : A car traveling east and a minivan traveling south collide in a completely inelastic collision at a perpendicular intersection. what is the speed of the vehicles immediately after collision

Show that the system has no overshoot in the step response : A causal LTI dicrete time system is said to have an overshoot in its step response if the response exhibits an oscillatory behavior with decaying amplitude around a final constant value.

What are the net cash flows for the following 3 years : The project requires an initial investment in net working capital of $163,000, and the fixed asset will have a market value of $188,000 at the end of the project. Assume that the tax rate is 30 percent and the required return on the project is 8 p..

Explain the calibration markings in the leg : You are given an open-ended mercury manometer and asked to determine the pressure in a pipleline that supplies feed gas to a reactor. However, when you connect the manometer to the pipeline, you noticed that the calibration markings in the leg tha..

Write a program that asks for number of numbers to be input : After each number is input, print a running average, calculated with the average() function described above. If the average is the last average to be displayed, indicate it is the final average.

Identify what makes flipping coin and keeping track of tails : Identify what makes flipping a coin and keeping track of tails a binomial experiment and please give one example of each, and describe how these examples differ from one another

Explain a ratio being of cyclohexane and toluene : How do you find the HETP of a fractionating column given the areas after a gas chromatogram were cyclohexane 6286 and toluene 346. with a ratio being of cyclohexane/toluene.

User Account

All Pages