Reference no: EM132393539
A project has an initial outlay of $2,278. The project will generate annual cash flows of $748 over the 5-year life of the project and terminal cash flows of $321 in the last year of the project. If the required rate of return on the project is 4%, what is the net present value (NPV) of the project?
A 5-yr project has an initial requirement of $141,371 for new equipment and $9,135 for net working capital. The fixed assets will be depreciated to a zero book value over 5 years and have an estimated salvage value of $25,615. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $57,827. The cost of capital is 11% and the tax rate is 29%. What is the net present value of the project?
YZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000 and the terminal cash flow is $10,000. The required rate of return (cost of capital) is 15%. The net present value is $736.42. What if the annual cash flow increases to $58,000 instead? Re-calculate the NPV.
XYZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000 and the terminal cash flow is $10,000. The required rate of return (cost of capital) is 15%. The net present value is $736.42. What if the required rate of return is 13% instead? Re-calculate the NPV.
A company is selling an equipment after five years for $9,309. The equipment was originally purchased for $62,580. The tax rate is 12%. The equipment is classified as a 5-year property. What is the after-tax salvage value?
The MACRS allowance percentages are as follows, starting with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.
A company is selling an equipment after four years for $37,249. The equipment was originally purchased for $88,575. The tax rate is 12%.The equipment is classified as a 5-year property. What is the after-tax salvage value?
The MACRS allowance percentages are as follows, starting with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.
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