User Account

All Pages

What is the operating cash flow associated

Assignment Help Finance Basics
Reference no: EM132083434

The base price is $4,000 and it would cost another $1,000 to modify the machine to install the machine. The equipment falls in the MACRS 3 year class of depreciation with rates of 33%, 45%, 15% and 7%. The machine would require an investment in snacks (inventory/net operating working capital) of $500. The machine would produce revenue of $3,000 per year with costs of $534 per year. The firm's tax rate is 20%.

The firm plans on selling the machine at the end of three years for $1500 and recovering their investment in net working capital at that time as well.

What is the operating cash flow associated with the first year of operation?

Reference no: EM132083434

Questions Cloud

Calculate the 2012 earnings per share : Calculate the 2012 earnings per share that will be reported in Finco's 2014 annual report for comparative purposes. Round your answer to 2 decimal places
Calculate the private and public key : Using RSA, calculate the private and public key for the following values of p and q. P = 19 and q = 23.
What is the initial investment outlay : The firm paid a consulting firm $50,000 last year for advice on the project. The firm will use a building that could be sold for $155,915.
Prepare a statement of cash flows : Prepare a Statement of Cash Flows - The net wage checks were given immediately to employees. The payroll taxes will be paid to the IRS and state
What is the operating cash flow associated : What is the operating cash flow associated with the first year of operation?
What are the total cash flows in year three : What are the total cash flows in year three when the asset is sold?
Prepare the journal entries for umet company : Prepare the journal entries for UMET Company to record the restructuring on April 2, 2016, and the payment of interest on April 1, 2017
What is the net present value of the investment : What is the net present value of the investment if the required return is 12%?
Should participants prepare ahead of time : You are a new project manager working on a large project that has completed requirements gathering and is in the middle of the design stage of the SDLC.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd