Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question: Cash flows estimation and capital budgeting: You are the head of finance department in XYZ Company. You are considering adding a new machine to your production facility. The new machine's base price is $10,300.00, and it would cost another $2,920.00 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41%), and it would be sold after three years for $1,850.00. The machine would require an increase in net working capital (inventory) of $880.00. The new machine would not change revenues, but it is expected to save the firm $34,665.00 per year in before-tax operating costs, mainly labor. XYZ's marginal tax rate is 35.00%. Projects cost of capital is 15%
a. What is the initial cash outlay?
b. What are the free cash flow for year 1?
c. What is the additional Year-3 cash flow (i.e, the after-tax salvage and the return of working capital - also called terminal value)?
What is a current or "hot" topic in the news that related to environmental science that interests you?
A stock has returns of 8 percent, 12 percent, -22 percent, and 18 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year?
Create a chart summarizing the details of the investment for both Bob and Lisa. Explain the results in terms of time value of money.
From management's perspective, discuss and whether the item is positive or negative.
How do a high percentage of Medicaid patients influence a hospitals prices?
Consider the various means comparison procedures that have been discussed in this appendix, and indicate the advantages and disadvantages of each.
The Sarbanes-Oxley Act requires the chief executive officer and the chief financial Officer of public companies to personally certify annual and quarterly SEC filings.
The stock trades for $3.00 per share. It also has $2 million in face value of debt that trades at 90% of par. What is its ratio of debt to value for WACC purposes?
The required return on this stock is 13.0%. What is the best estimate of the current market value of Greshak's stock?
Set up the amortization schedule for a 5-year, $1 million, 9 percent term loan that requires equal annual end-of-year payments plus interest on the unamortized loan balance. What is the effective interest cost of this loan?
your rich aunt has promised to give you 2000 a year at the end of each of the next four years to help you pay for
Why is the interest rate on a security sold by a city government usually less than the interest rate on a security sold by a corporation if both have comparable default risk?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd