What is the annual after-tax cash flow associated

Assignment Help Financial Accounting

Reference no: EM131223593

Lanyard company is considering an investment that will generate $600,000 in cash inflows per year for 7 years and has $240,000 of cash outflows for the same period(before income taxes). The cost of the asset is $700,000 and it will be depreciated using straight-line over the 7 year life. The asset has no salvage value. Lanyards tax rate is 40%. The cost of capital is 18%. What is the annual after-tax cash flow associated with this investment?

Reference no: EM131223593

Questions Cloud

How would a slow economy impact henry company : Henry Dubois' desire to become a better golfer was the catalyst for the creation of the Align-Drive. What was the role of sagacity? Discuss the role of sagacity. How did self initiated activity play a role in the development of Align-Drive? How woul..

Give the total cost as a function of the height : Give the total cost as a function of the height H and radius R.Use units of metres for both H and R.Note that it is case sensitive - you must use exactly the variable names given in the question?

What is net cash inflow or resulting from this investment : Inglewood Inc. would like to purchase a specialized production machine for $3,500,000. The machine is expected to have a life of 3 years, and a salvage value of $200,000. Annual maintenance costs will total $200,000. Annual material savings are predi..

How many days of sales are in receivables at year end : What is the cash flow from assets for 2015? - How many days of sales are in receivables at year-end?- What is the equity multiplier?

What is the annual after-tax cash flow associated : Lanyard company is considering an investment that will generate $600,000 in cash inflows per year for 7 years and has $240,000 of cash outflows for the same period(before income taxes). The cost of the asset is $700,000 and it will be depreciated usi..

Maximum and minimum values : Which other x-values can give the maximum and minimum values of f(x)? List them in increasing order in the format in the format (x1,x2,...,xn), for example (1,2,3)?

Analyze the impact of an ngo on a specific human rights : Analyze the impact of an NGO on a specific human rights problem. Make sure to include overviews of the organizations you mention in your own words- no quotations, but be sure to cite paraphrased information.

How would the experimental value be influenced : How would experimental value be influenced if all water were not driven off? If some of the anhydrous compound had decomposed, would the experimental percentage of water in the hydrate be higher or lower than it should be?

Lectures on extreme values of continuous functions : Given the following function of x, f(x)=|x-2|+|3x-2|-|x+2|,-3≤x≤5 a) State all of the x-values at which extrema could occur according to the theorem from the lectures on extreme values of continuous functions. Enter a list, for example (3,4,5)?

User Account

All Pages