What is the project net investment outlay

Assignment Help Financial Accounting
Reference no: EM132803711

Question - You are considering purchasing a new database system for your company. The system will cost $80,000, and it will cost another $15,000 for equipment and training. The system is expected to be sold after three years, when you plan to outsource database activities. You hope that you can sell your system to a competitor for $12,000. You expect to save $22,000 per year in operating costs. Your corporate cost of capital is 10%.

Required -

a. What is the project's net investment outlay at Year 0?

b. What are the projects' operating cash flows in Years 1, 2, and 3?

c. What is the terminal cash flow at the end of Year 3?

d. If the project has average risk, is it expected to be profitable? On what basis did you draw this conclusion?

Reference no: EM132803711

Questions Cloud

IT 6210 Global Connections Through Technology Assignment : IT 6210 Global Connections Through Technology Assignment Help and Solution, Abu Dhabi School of Management - Assessment Writing Service
Prepare the journal entry to record the repurchase of bond : Kollova repurchased 10% of the bonds on the open market at 102. Prepare the journal entry to record the repurchase of the bond
Describe the current state of lgbtq equity in the society : LGBTQ Equality, Describe the current state of LGBTQ equity in our society. What challenges still persist and how can we best confront these?
Explain the social justice principles within judaisms : Define and explain the social justice principles within Judaism's (Tikkun Olam & Tzedek/tzedakah), Christianity's seven themes, Islam's modernist, revivalist.
What is the project net investment outlay : The system will cost $80,000, and it will cost another $15,000 for equipment and training. What is the project's net investment outlay at Year 0
How well the company embodies issue-related values : Evaluates how well the company embodies its issue-related values. Your presentation should contain detailed speaker's notes that flesh out
Determine amount of factory overhead that under applied : During March, 5,750 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied
How social scientists can begin to better address issues : How social scientists can begin to better address issues through applying more than one disciplinary area of expertise. Provide an example.
Determine the current ratio and the quick ratio : The following items are reported on a company's balance sheet: Cash $661,500. Determine the current ratio and the quick ratio

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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