What is the present value of working capital expenditures

Assignment Help Financial Management
Reference no: EM132072184

1. What is the present value of working capital expenditures if a project entails a working capital expenditure of $100,000 immediately, which is recovered in 8 years? What if the working capital expenditure is not incurred until one year into the project? Assume the tax rate is 20% and the opportunity cost of capital is 6%.

2. What are the relevant cash flows associated with depreciating a $200,000 capital expenditure over four years if the tax rate is 25% and the opportunity cost of capital 7%?

Reference no: EM132072184

Questions Cloud

Discuss the impact of the choice of methodology on thesis : MACJ-595: Discuss the impact of the choice of methodology on the thesis. Discuss and evaluate the methodology you employed for your research.
What are the future financial projections of the company : FOR AMAZON What are the future financial projections of the company and how does it plan to get there?
Replacement value assets : Comstock Company has replacement value assets of 100 and liabilities of 85. The book value of Comstock is
Considering two-year project with present value of revenues : You are considering a two-year project with a present value of revenues of $4 million.
What is the present value of working capital expenditures : What is the present value of working capital expenditures if a project entails a working capital expenditure of $100,000 immediately,
Examine the issues of capital punishment : Examine the issues of both capital punishment and gun control in the United States. The Instructor will split the class into two groups.
What is the percentage flotation cost on the net proceeds : If the company’s investment dealer charges a 5% spread on the rights offer, what is the percentage flotation cost on the net proceeds?
What is the initial selling price of the bonds : What is the initial selling price of the bonds? Interest is determined by what approach? (effective interest rate OR straight line approach)
Why must effective leaders live for eternity : Why must effective leaders live for eternity? Please explain the importance and relevance of the following statement: "To lead well is to live well."

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

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).

  Conduct a what-if analysis

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.

  Determine operational expenditures

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.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

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.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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!

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