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!
FBR Corporation has just finished minor renovations on their office building at a cost of $150,000. FBR originally allocated only $100,000 for this renovation. A memo from accounting suggests that the $50,000 cost overrun should be charged to the next new project the company will implement. As its next project, FBR Corp. is considering the acquisition of a new machine that would replace one of their old machines in use. The new machine costs $0.9 million (t=0), and it can be sold at the end of its expected 4-year operating life for $300,000. The new machine takes up more space and GEC will need to move maintenance and cleaning supplies that used to be stored next to the machine to a small storage room that could otherwise be sublet for $25,000 a year (at t=1 to t=4). The old machine was bought 8 years ago for $800,000 and can be sold for $300,000 today or for $150,000 in 4 years. FBR paid $25,000 for a study which indicates that the new machine will reduce manufacturing costs by $220,000 annually. Moreover, net working capital will be reduced by $150,000 when the new machine is installed, and will increase again by $150,000 at the end of the machine’s operating life. Both machines belong to asset class 43 with a CCA rate of 30%. FBR’s marginal tax rate is 40%, and it uses a discount rate (required rate of return, RRR) of 14% to evaluate projects of this nature. a) What is the initial cash outlay (the total cash flow at t=0)? b) What is the first year’s cash flow (excluding the CCA Tax Shield)? c) What is the last year’s cash flow (excluding the CCA Tax Shield)? d) What is the year 3 CCA? e) What is the PV CCA Tax Shield? f) What is the NPV of the replacement project? g) Should FBR Corp. replace the old machine with the new one?
Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.
In this essay, we are going to discuss the issues of financial management in a non-profit organisation.
Evaluate venture's present value, cash and surplus cash and basic venture capital.
This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?
Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.
In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).
Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.
Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.
How much will you have left over each half year if you adopt the latter course of action?
A quoted company is considering several long-term sources of finance for expansion into new foreign markets.
This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.
This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.
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