What is the annual operating cash flow of project

Assignment Help Financial Management
Reference no: EM132578179

GEQ Enterprise is considering a new project. The project will require the purchase of an equipment at the price of RM300,000, and RM100,000 for additional investment in net working capital. The equipment has an 8-year life and will be depreciated straight-line to a zero book value. At the end of the project life, the equipment is expected to be sold at RM50,000. The project is expected to generate annual sales of RM445,000 and reduction in annual maintenance costs of RM130,000. The tax rate is 25 percent and the required rate of return is 10 percent. What is the annual operating cash flow of this project?

Reference no: EM132578179

Questions Cloud

Psychological or sociological aspects of disability : Content addressing the psychological or sociological aspects of disability.
Calculate the required return for shares : Assuming a risk-free rate of 3% and market risk premium of 7%, calculate the required return for both shares. If the future growth
Devise an integration plan : this assignment is to demonstrate your use of concepts and theories material (textbook, lecture or videos) to devise an integration plan.
Discuss your current place of employment : Discuss your current place of employment or a recent job you have held - successful business is both efficient and effective
What is the annual operating cash flow of project : The tax rate is 25 percent and the required rate of return is 10 percent. What is the annual operating cash flow of this project?
Public sector and private sector communication styles : Discuss some differences between public sector and private sector communication styles and approaches?
Determine the cost to produce heaters : A company finds it can produce 5 heaters for $ 1900, while producing 10 heaters costs $ 3100. Determine the cost to produce 20 heaters
Detail communication : Which you detail communication needs and practices with considerations of: Cultural and ethical considerations for public sector communications
What would be his taxable gain on the sale : The alternate valuation date was not elected. If Hugh sells the Atom Corporation stock for $11,900, what would be his taxable gain on the sale

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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