User Account

All Pages

What are the operating cash flows in year

Assignment Help Finance Basics
Reference no: EM132953610

Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $48,000 and will be depreciated straight-line over 3 years. It will be sold for scrap metal after 5 years for $12,000. The grill will have no effect on revenues but will save Johnny's $24,000 in energy expenses. The tax rate is 30%.

Required:

a. What are the operating cash flows in each year?

b. What are the total cash flows in each year?

c. Assuming the discount rate is 10%, calculate the net present value (NPV) of the cash flow stream. Should the grill be purchased?

Reference no: EM132953610

Questions Cloud

What amount should be reported as gain or loss : The income tax rate is 30%. In the 2013 income statement, what amount should be reported, as gain or loss on the cumulative effect of this change
Total capital of a company : 1. Shares represent units of ownership interest or a specificpart of the total capital of a company.
Compute the carrying value of the investment : Using the information in requirement no. 3, compute the carrying value of the investment in associates on December 31, 2020
What is the present value of inheritance : Your investments earn 6% annually, compounded annually. To the nearest hundred dollars, what is the present value of your inheritance?
What are the operating cash flows in year : Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $48,000 and will be depreciated straight-line over 3 years.
Compute wacc : Firm XYZ has 10 million outstanding shares, each selling for $15 per share. The firm's debt is publicly trading at 90 percent of its $75 million face value.
How much money does the clinic need to set aside today : Suppose the clinic's cost of capital is 7%. To the nearest hundred dollars, how much money does the clinic need to set aside today?
Which option should ronnie choose in order : Which option should Ronnie choose in order to get the largest charitable contribution deduction? Ignore any possible limitations posed by Ronnie's AGI
Explain how raw data are collected and analyzed : Define raw data in health care. Explain four types of raw data currently being used in health care settings. Explain how raw data are collected and analyzed.

Reviews

Write a Review

Finance Basics Questions & Answers

  Decision-making process of policymakers and regulators

How does the rise of the the Covid-19 pandemic influences the decision-making process of policymakers and regulators within the financial sector.

  Describe some risks that affect bond prices

Risks and Bonds- Message expanded.Message readRisks and Bonds. Describe some risks that affect bond prices. Consider default risk, liquidity risk, and other risks discussed in the text.

  Example of an organization that continuously maintains

Research and submit for discussion an example of an organization that continuously maintains and improves customer satisfaction through a Total Quality

  Takahashi and yamanaka induce adult mouse

Using 2 to 3 sentences to describe how did Takahashi and Yamanaka induce adult mouse fibroblasts to become "induced pluripotent stem cells"(iPSCs)?

  Establish an appropriate risk management system

Question 1: How can an Islamic Financial Institutions establish an appropriate risk management system and environment? Explain.

  Mean and standard deviation of number of customers

a. What are the mean and standard deviation of the number of customers exceeding their credit limits? b. What is the probability that zero customers will exceed their limits?

  Examples of the various tax incentive strategies

locate at least three real world examples of the various tax incentive strategies that public agencies use. Describe how the incentives function within the community they are in and how effective each incentive has been in helping to create jobs, bri..

  A share-based payment transaction in which the entity

1. in a share based payment transaction where the entity has settlement choicea. if a present obligation does not exist

  What are some of the problems associated with using

which ratios measure a corporationrsquos liquidity? what are some of the problems associated with using financial

  Problem related to the coogly company

Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation ..

  What is the after-tax preferred yield for selten

Buggy's tax rate is 0% due to continuing heavy tax losses, and Selten's tax rate is 34%. What is the after-tax preferred yield for Selten?

  Explain why it is important to keep abreast of developments

Briefly outline to John the process that will occur from your meeting onwards and although some of these stages do not involve the mortgage broker, briefly explain why it is important to keep abreast of developments.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd