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!
You have been asked by the President of your company to evaluate the proposed acquisition of a new spectrometer for the firm's R&D department. The equipment's basic price is $70,000, and it would cost another $10,750 to modify it for special use by your firm. The spectrometer, which falls into the MARCS 3-year class, would be sold after 3 years for $30,000. Use of the equipment would require an increase in net working capital (spare parts inventory) of $4,000. The spectrometer would have no effect on revenues, but it is expected to save the firm $25,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 40%.
a. What is the net cost of the spectrometer (i.e., the Year-0 Net Cash Flow)b. What are the net operating cash flows in Years 1, 2 and 3?c. What is the additional (non-operating) cash flow in Year 3?d. If the project's cost of capital is 10%, should the spectrometer be purchased?
The fund you represent is a significant shareholder in Iron Man Industries which just paid a dividend of $5.25 per share is currently expected to increase in perpetuity at 5 percent every year.
Using the information below, create a decision tree for John Smith Framing and compute the expected value for each printer. Which printer should the framing store purchase?
A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount every year into an investment account that earns 8 percent interest per year, beginning on the day your child i..
Old Time Savings Bank pays 4% interest on its savings accounts. If you deposit $1,000 in the bank and leave it there, how much interest will you earn in 1st year?
At what discount rate would you be indifferent between accepting the project and rejecting it?
You want to have $78,000 in your savings account 12 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.80 percent interest, what amount must you deposit each year?
Calculation of net present Value of Maple Media is considering a proposal to enter a new line of business
My company is located in MO and I am planning opening a branch office in Ohio. Under normal economic conditions, which have a 45 percent chance of occurring,
A governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances reported expenditures of $33,500,000, including capital outlay expenditures of $3,200,000.
If a corporation wants to allocate Head Quarters administrative expenses to its consulting offices and discuss the pros and cons for each of the following in terms of incentives,
Compute of cost of capital and Calculate the cost of capital for the funds needed to meet the expansion goal and The firm expects to generate enough internal equity to meet the equity portion of its expansion needs.
Computation of length of inventory period and the firm had a beginning inventory of $36,000 and an ending inventory of $46,000
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