Reference no: EM13292770
New-Project Analysis
You have been asked by the president of your company to evaluate the proposed acquisition of a new spectrometer for the firm's R&D department. The equipment's basic price is $70,000, and it would cost another $15,000 to modify it for special use by your firm. The spectrometer, which falls into the MACRS 3-year class, would be sold after 3 years for $30,000. Use of the equipment would require an increase in net working capital (spare parts inventory) of $4,000. The spectrometer would have no effect on revenues, but it is expected to save the firm $25,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 40%.
a. What is the net cost of the spectrometer? (That is, what is the Year-0 net cash flow?)
b. What are the net operating cash flows in Years 1, 2, and 3?
c. What is the additional (nonoperating) cash flow in Year 3?
d. If the project's cost of capital is 10%, should the spectrometer be purchased?
|
What is the degree of operating leverage at the accounting
: A four year project costs $1.7 million and has straight-line depreciation. Sales of 190 units per year are projected, with a unit sales price of $18,000. Variable costs per unit are $11,200, and fixed costs are $410,000 per year. The required retu..
|
|
Implement design in logicworks and test for functions
: Design a finite state machine that has an input (w) and an output(z). The machine is a sequence detector that produces (z =1). when the previous two values of (w) were (00 or 11); otherwise (z = 1). Assume the initial state is unknown past with (z..
|
|
Explain how many moles of acetic acid
: If you find that it takes 0.1050 moles of sodium hydroxide to reach the equivalence point how many moles of acetic acid were present at the beginning of the titration
|
|
Change the value of the integers in the function
: Create a program that Writes a function that finds the larger of two integers input (in the main program) but allows you to change the value of the integers in the function using pass by reference?
|
|
What are the net operating cash flows in years 1, 2, and 3
: The spectrometer would have no effect on revenues, but it is expected to save the firm $25,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 40%.
|
|
What is the tension in the strap
: If a Joe pulls a 37-kg crate at a 0.62 m/s^2 using a horizontal strap, when 250N of friction acts on it, what is the Tension in the strap
|
|
Indicate the correct accept-reject decision for each
: Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept-reject decision for each.
|
|
Find the altitude of the plane
: A plane flies parallel to the ground at a speed of 1.15 times the speed of sound. What is the altitude of the plane
|
|
Define the correct lewis electron-dot symbols
: Choose the correct Lewis electron-dot symbols that depict the monatomic ions formed from each of the reactants, and predict the formula of the compound the ions produce.
|