What is the equivalent uniform annual worth of project

Assignment Help Financial Management

Reference no: EM131886191

Haversham Consulting is taking on a big project with a lifespan of 19 years. Start-up costs are estimated to be $596926. Annual expenses will be $234102, projected to increase by 6% each year. The project will take place in different phases. During the first 4 years, revenue is projected to be $412894 per year. Revenue will then increase to $834793 per year for the next 7 years. For the remainder of the project, revenue will be $1244243 per year. A bonus of $393230 will be received at the end of the project. Using an interest rate of 6%, what is the equivalent uniform annual worth of the project?

Hint: Count the years carefully for the last years of revenue.

Enter your answer as 1234

Round your answer. Do not use a dollar sign ("$"), any commas (","), or a decimal point (".").

Reference no: EM131886191

Questions Cloud

Annual payments on this interest-only loan : What are Kelsie's annual payments on this interest-only loan?

What do we mean by future value of an investment : What do we mean by future value of an investment and why is this important to you and your financial planning for the future?

Calculate the degree of operating leverage for the company : Calculate the degree of operating leverage for the company below. If actual quantity is 56,000 units, the percentage increase will be.

Tax credits-the estimated remaining discount expense : The estimated remaining discount expense that can be taken as a tax deduction as a result of a sale after a 7 year holding period is

What is the equivalent uniform annual worth of project : Haversham Consulting is taking on big project with a lifespan of 19 years. Using an interest rate of 6%, what is the equivalent uniform annual worth of project?

Pay dividends for the first five years of operation : Staton-Smith Software is a new? start-up company and will not pay dividends for the first five years of operation.

The tax basis of property acquired in like-kind exchange : The rationale behind IRS allowance of depreciation deductions is. The tax basis of property acquired in a like-kind exchange:

Property is located in registered historic district : In like-kind exchanges. When a property is located in a registered historic district:

A taxpayer adjusted tax basis in property : A taxpayer's adjusted tax basis in a property is. An important aspect of the depreciation allowance is that.

User Account

All Pages