What is the after-tax net present value of a project costing

Assignment Help Accounting Basics
Reference no: EM131806506

What is the after-tax net present value of a project costing $588000 that Plud Corporation can invest in if the project has the following estimated revenues and expenses? (For calculation purpose, round factor values to 3 decimal places.)

Initial cost $588000
Revenue 2030000
Expenses 1454000
Revenue 1830000
Expenses 1256000

Plud uses an 8 percent discount rate for evaluation and expects a 34 percent marginal tax rate in the relevant years.

Reference no: EM131806506

Questions Cloud

Find the interest paid in the last : Find the interest paid in the last $400 payment.
Determining the car purchase price : Sam can afford to spend $500 per month on a car. He figures he needs half of it for gas, parking, and insurance. He has been to the bank
Compose a written response of your argument : Some say our society is creating children who are more independent today. Compose a written response of your argument, addressing the required criteria.
What percentage must be saved for retirement : A young engineer's starting salary is $55,000. The engineer expects annual raises of 2%. The engineer will deposit a constant percentage of the annual salary.
What is the after-tax net present value of a project costing : What is the after-tax net present value of a project costing $588000 that Plud Corporation can invest in if the project
Describe five benefits of a family-centered approach : Describe five benefits of a family-centered approach. Describe two potential obstacles to overcome in a family-centered approach.
How much will you have saved for retirement : Find the average starting engineer's salary for your discipline. Find and reference a source for the average annual raise you can expect.
What is the goal of the session : The planning for the community building session is almost complete. What is the goal of the session? How much time will be allocated to each step or task?
Compute the direct labor cost variance : Required - Compute the direct labor cost variance, including its rate and efficiency variances

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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