What is the irr for project

Assignment Help Finance Basics
Reference no: EM132455516

Firm is contemplating the purchase of a new machine costing $570,000. The machine will be depreciated straight line to zero over its five-year life. It will be worth $58,000 at the end of that time. You will save $270,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $73,000 (one time reduction). The tax rate is 35%. What is the IRR for this project?

Reference no: EM132455516

Questions Cloud

How much will you receive during each of the 10 years : You have just purchased a life insurance policy that requires you to make 40 semiannual payments of $350 each, where the first payment is due in 6 months.
Total real rate of return on investment : Suppose you bought a 4.6% annually coupon bond one year ago for $930. The bond sells for $955 today. A) assuming $1000 face value, what was your total
How would you encourage employees to follow your plan : In Chapter 7 we learned about the Information Calorie and Information Cap-and-Trade. Choose one of these concepts and expound on it. Include how you would.
Seat on the board of directors : If the company uses cumulative voting procedures, how much will it cost to guarantee yourself one seat on the board of directors?
What is the irr for project : Firm is contemplating the purchase of a new machine costing $570,000. The machine will be depreciated straight line to zero over its five-year life.
Why would you recommend implementing group policy controls : As a security administrator in your organization, why would you recommend implementing Group policy controls to the management of your organization?
Develop three-tier client-server architecture : After reviewing the concepts of advanced software engineering in the previous assignment, your task is to design the three-tier client-server and distributed.
What the appeal for us companies to outsource it functions : Write a short paper (2-4 paragraphs) explaining what the appeal would be for US companies to outsource IT functions to these countries.
How steganography works in the world of data security : In this essay, you will explain how Steganography works in the world of data security. Discuss the many benefits as well as challenges or drawbacks in using.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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