What is the initial outlay of project

Assignment Help Business Management
Reference no: EM132558416

A company is planning to replace old equipment with new, more efficient equipment. The company spent $70,000 on a market study and consulting a few months ago. It purchased the old equipment 15 years ago for $2,300,000. The old equipment is depreciated to $400,000 and has a market value of $500,000 today. The new equipment will cost $3,000,000. In order to make the equipment operable, the company must pay $100,000 for installation and $150,000 for necessary training. With the anticipated growth due to the equipment replacement, the company has to invest $60,000 in working capital. The marginal tax rate is 32%. What is the initial outlay of this project to replace old equipment?

Reference no: EM132558416

Questions Cloud

Capitalized value of research at leon technology : Leon Technology is a firm that specializes in advanced telecommunication software and has been in existence for 4 years
How frank will treat the oil filter inventory : He uses one to repair an auto in January 2020, and then about 2 per month and ends 2020 with 14 filters. Explain how Frank will treat his oil filter inventory.
What is the total amount of new money raised : In 2010, Pandora, Inc., makes a rights issue at a subscription price of $6 a share. One new share can be purchased
Which is not a way the initiative might be reflected : Which of the following is not a way this initiative might be reflected in the grocery store's contribution margin income statement?
What is the initial outlay of project : The marginal tax rate is 32%. What is the initial outlay of this project to replace old equipment?
Compute what is the predetermined overhead rate : Compute What is the predetermined overhead rate? Overhead is applied to contracts using a predetermined overhead rate calculated annually
Analyze and record transaction and post transaction : Prepare complete accounting cycle which includes (Analyze and record transaction, post transaction to the ledger account, prepare an unadjusted)
How do think determine the expected sales : What if you are a brand new company and you don't have any historical data to look at? How do you think they determine their expected sales?
Prepare complete accounting cycle : Analyze and record transaction, post transaction to the ledger account, prepare an unadjusted trial balance, Financial statements

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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