What is the non-operating terminal cash flow of the machine

Reference no: EM13263979

Lasalle Industries is considering the purchase of a new machine that will cost $250,000, plus an additional $10,000 to ship and install. The new machine will have a 5-year useful life and will be depreciated to zero using the straight-line method. The machine is expected to have a salvage value of $30,000 at the end of year five. LaSalle's income tax rate is 40%. The additional net working capital from this project of $50,000 is expected to return to its pre-project level upon termination. What is the non-operating terminal cash flow of the machine?

Select one:

a. $68,000
b. -$32,000
c. $80,000
d. $48,000

Reference no: EM13263979

Questions Cloud

What is the approximate market value of the bond : A 15-year zero-coupon bond was issued with a $1,000 par value to yield 8%. What is the approximate market value of the bond?

What is the market value of the bond : a 10 year bond pays 5% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the bond? Use annual analysis.

How many shares need to be sold : The offer price is $45 per share and the company's underwriters charge a spread of 7 percent. The SEC filing fee and associated administrative expenses of the offering are $550,000. (Enter your answer as directed, but do not round intermediate cal..

What is the incremental free cash flow for year one : Working capital is expected to increase by $5,000 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?

What is the non-operating terminal cash flow of the machine : The additional net working capital from this project of $50,000 is expected to return to its pre-project level upon termination. What is the non-operating terminal cash flow of the machine?

What is the after-tax salvage value of the old machine : The existing machine is 8 years old, cost $200,000, had a 10-year useful life, and is being depreciated to zero using the straight-line method. Waterford's income tax rate is 35%. What is the after-tax salvage value of the old machine?

Write a single definition paragraph talking about the vari : For the primary independent variable, at least two research sources that discuss the variable also must be cited. These sources need not be technical documents but should contain evidence to justify the relationship between

What kind of deal did the soccer player snag : Assuming all payments, except the first $2 million are paid at the end of each year and the discount rate is 9% what kind of deal did the soccer player snag?

Calculate the current yield for each bond : Jason Greg is a recent retiree who is interested in investing some of his saving in corporate bonds. Listed are the bonds

User Account

All Pages