Reference no: EM133077061
Question - Sheridan Films is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be fully depreciated by the straight-line method over 3 years, but it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, some new working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?
Project cost of capital (r) 10.0%
Net investment in fixed assets (depreciable basis) $70,000
Required new working capital $10,000
Straight-line deprec. rate 33.333%
Sales revenues, each year $75,000
Operating costs (excl. deprec.), each year $30,000
Expected pretax salvage value $5,000
Tax rate 25.0%
a. $25,964
b. $28,768
c. $30,207
d. $31,717
e. $27,330
|
Determine cove break-even point in units and sales dollars
: Cove's Cakes is a local bakery. Price and cost information follows: Price per cake $14.31. Determine Cove break-even point in units and sales dollars
|
|
Prepare journal entries for Marathon Company
: Prepare journal entries for Marathon Company for each of the above transactions, including any applicable year end adjusting entries
|
|
Develop a swot analysis for your product
: Write an introduction to your hypothetical company, describing its location, the product it makes or the service it provides, and the contents of your marketing
|
|
Calculate the net cash provided by operating activities
: Calculate the net cash provided (used) by operating activities for Bromfield Co. for the year ended December 31, 2019
|
|
What is the project NPV
: Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV
|
|
What is the unit product cost for the new product
: The company plans to invest $290,000 in operating assets to produce and sell 29,000 units. What is the unit product cost for the new product
|
|
What was the operations meat cost percentage for the period
: The operation spent $6,000 on meat in the period. What was the operation's meat cost percentage for the period
|
|
Explain how changes in customer demand have affected
: What direction should Hewlett-Packard marketing strategy take in the future - How have changes in customer demand affected past marketing strategy
|
|
What is divisions A a segment margin
: Division a has a contribution margin of $180,000. If division B has traceable fix expense of $80,000 than what is divisions A's a segment margin
|