User Account

All Pages

What is the operating cash flow for fourth year of project

Assignment Help Financial Accounting
Reference no: EM132998998

Problem 1: Phone Home, Inc. is considering a new 6-year expansion project that requires an initial fixed asset investment of $5,994,000. The fixed asset falls into the five-year MACRS class and will be worthless at the end of its life. The MACRS rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, 5.76% for years 1-6, respectively. The project is estimated to generate $5,328,000 in annual sales, with costs of $2,131,200. The tax rate is 16 percent. What is the operating cash flow for the fourth year of this project?

Reference no: EM132998998

Questions Cloud

Which are the most and least speculative ones : Of all the securities in the financial markets, which are the most and least speculative ones? Elaborate.
What is the amount of income tax expense : What is the amount of income tax expense for 2021? Ivanhoe Company has a tax rate of 20% and income taxes payable of $184000.
Current state of supply and demand for loanable funds : What do you think about the current state of supply and demand for loanable funds? What do you think about the equilibrium interest rates? Elaborate.
What principal will amount : Question - What principal will amount to $9200 six years from today if interest is 5.3% p.a. compounded weekly
What is the operating cash flow for fourth year of project : What is the operating cash flow for the fourth year of this project? The project is estimated to generate $5,328,000 in annual sales, with costs of $2,131,200.
Find what is the net present value for the project : The tax rate is 30 percent and the required return for the project is 11.0 percent. What is the net present value for this project?
Calculate the prime cost and conversion cost budgeted : Calculate the Prime cost and Conversion cost budgeted per unit costs if expected production is 8,000 units
Calculate net income for tax purposes and taxable income : Johnny Bucks has come to you for help in calculating his Net Income for Tax purposes and Taxable Income for 2021. Assume all the information
What are the roles of the money markets : -What are the roles of the money markets? Who are their primary clients? How do they benefit our economy? What would happen in their absence?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Transactions in the capital projects fund

Geneva County authorized the issuance of bonds and contracted with the Chessie Construction Company (CCC) to build a new convention center. During 2013, 2014, and 2015, the county engaged in the transactions that follow. All were recorded in the coun..

  Which accounting concepts should be considered

If an owner takes goods from the inventory for personal use, which of the following accounting concepts should be considered?

  What is the value of the contract in year

You are the GM for the Belchertown Bowlers, the local minor league bocce team. Assuming that i=6%, what is the value of the contract in year 0

  Record the journal entries associated with the events

Record the journal entries associated with the above events. Marino Furniture Corporation (MFC) had the events during the year.

  How much annual depreciation expense should be recognized

How much annual depreciation expense should be recognized for 2016, using straight-line depreciation? On Jan. 1, 2014, a company placed into service a machine.

  Find the amount of the annual net income

A project that cost $48000 has a useful life of 5 years and a salvage value of $3000. Find the amount of the annual net income

  Calculate the tax liability on the assets

During 2002, a firm has sold 5 assets described below. Calculate the tax liability on the assets. The firm pays a 40 percent tax rate on ordinary income.

  Find what is empire net cash flow from operating activities

Find What is Empire net cash flow from operating activities? Empire Company uses the indirect method to prepare its statement of cash flows

  What must? lisa annual deposit? be for lisa simpson

Lisa Simpson wants to have ?$1,300,000 in 35 years by making equal annual? end-of-the-year deposits, What must? Lisa's annual deposit? be?

  Discuss the advantages and disadvantages of debt issues

Discuss the advantages and disadvantages of the two proposed debt issues, and make recommendations to the issuing company

  Find calculate the yield to maturity on the bond

Coupon interest rate and a RM1,000 par value, pays interest annually, and has 12 years to maturity. Calculate the Yield to Maturity (YTM) on this bond.

  Why do think that companies are allowed to file using ifrs

Why do you think that companies are allowed to file using IFRS when that creates apples to oranges comparison with US Companies?

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