What is the incremental free cash flow for year one

Assignment Help Finance Basics

Reference no: EM13268260

Your company is considering the replacement of an old machine with a new one that is more efficient. The old machine cost $50,000 when it was purchased 9 years ago. The old machine is being depreciated using the simplified straight-line method over a useful life of 10 years. The old machine could be sold today for $4000. The new machine has an invoice price of $75,000, and it will cost $5000 for shipping and $20000 to modify and install the machine. Cost savings from use of the new machine are expected to be $25000 per year for 5 years, at which time the machine will be worn out and sold for its estimated scarp of value of $5000. The new machine will be depreciated using the simplified straight-line method over its 5 year useful life, resulting in expected to increase by $10000 at the inception of the project, but this amount will be recaptured at the end of year five. What is the incremental free cash flow for year one?

Reference no: EM13268260

Questions Cloud

Discuss how we use the control panel : What are at least three configuration planning considerations that must take place to ensure proper deployment of Antivirus, Firewall, and IDS/IPS devices on a small network?

Calculate copper and core losses in transformer at condition : A 150-MVA 15/200-kV single-phase power transformer has a 0.018ohm resistance and a 0.075ohm reactance. The magnetizing impedance is j80 per unit. a.) Find the equivalent circuit referred to the low-voltage side of this transformer.

Explain how to make a solution of hydrogen peroxide : How do you figure out how to make a solution of 50mL of 3.6M hydrogen peroxide (H2O2) from 30% hydrogen peroxide

Find the focal length of a correctly prescribed contact lens : An eye has trouble seeing an object closer than 60 cm but needs to see objects at 25 cm from it. find the focal length of a correctly prescribed contact lens

What is the incremental free cash flow for year one : The new machine will be depreciated using the simplified straight-line method over its 5 year useful life, resulting in expected to increase by $10000 at the inception of the project, but this amount will be recaptured at the end of year five. Wha..

Design a minimum two-level nor-gate network to realize : Given the function F(a,b,c,d)=a'b+ad'+ab' a) Design a minimum two-level NOR-gate network to realize the above function. b) Design a minimum three-level NOR-gate network to realize the above function.

How much heat flows in to our out of the gas : a cylinder contains 4.0moles of a monoatomic gas at an initial temp of 27deg C. How much heat flows in to our out of the gas

Define what is the mass number of the other isotope : Naturally occurring gallium consists of two isotopes. One of those isotopes is 71Ga with an isotopic mass of 70.9247050 amu and an abundance of 39.892%. What is the mass number of the other isotope

Critically review your own facebook : What information is appropriate to place in these forums and what shouldn't be shared and why - should employers have the right to seek out these personal postings and make decisions about you based on what they read?

User Account

All Pages