What is the project npv of foley systems

Assignment Help Business Management
Reference no: EM133038995

Problem:

Foley Systems is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require additional net operating working capital that 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 life. What is the project's NPV? (Hint: Cash flows from operations are constant in Years 1 to 3.) Do not round the intermediate calculations and round the final answer to the nearest whole number.

WACC

10.0%

Net investment in fixed assets (basis)

$75,000

Required net operating working capital

$15,000

Straight-line depreciation rate

33.333%

Annual sales revenues

$56,000

Annual operating costs (excl. depr.)

$25,000

Tax rate

35.0%

 

Reference no: EM133038995

Questions Cloud

Discuss the role of nongovernmental organizations : Discuss the role of nongovernmental organizations (NGOs) in providing health care services and identify one international NGO.
What is the tax effect adjustment on June : T Limited accrued $10,000 for warranty expense in the year ended 30 June 2021. What is the tax effect adjustment on 30 June 2021
Describe the key input factors that influence organization : 1. Describe the key input factors that influence the organization:
Record the transactions for the month of march : Record the transactions for the month of March 2019 using a financial transaction worksheet - Paid salaries of the part-time assistants, P11,200
What is the project npv of foley systems : Foley Systems is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year
Calculate the NPV of the most likely outcome : The proposed investment will cost RM5·2m, payable in full at the start of the first year of operation. Calculate the NPV of the most likely outcome
Calculate the budgeted cost of goods sold for Conlan Inc : Using information from the sales budget and the following information, calculate the budgeted cost of goods sold for Conlan Inc
Evaluate manual handling work practices : Identify two (2) strategies you could use to evaluate manual handling work practices for noncompliance with work health and safety legislation.
Determine the compatibility of the products : ICon is an IT startup that develops a stand-alone software application for net conferencing. FileS is another IT startup developing a corporate

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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