What is the project one year cash flow

Assignment Help Financial Management

Reference no: EM131949743

Clemson software is considering a new project who’s that are shown below. The required equipment has a three-year tax life, after which it will be worthless, and it will be depreciated by the straight-line method over three years. Revenues another operating costs are expected to be consistent over the projects three-year life. What is the project one year cash flow?

Equipment Costs = $75,000

Sales revenues each year = $80,000

Operating costs = $30,000

Tax rate = 35%

Reference no: EM131949743

Questions Cloud

Comment on the company business model : Using the information you've collected so far, comment on the company's business model.

What is the average tax rate : Company has 278,000 in taxable income. What is the Average tax rate?

Comparing two different capital structures : Haskell Corp. is comparing two different capital structures. Plan I would result in 13,000 shares of stock and $130,500 in debt.

What is the projects year one cash flow : Revenues and other operating costs are expected to be constant over the projects 3 year life what is the projects year 1 cash flow?

What is the project one year cash flow : Revenues another operating costs are expected to be consistent over the projects three-year life. What is the project one year cash flow?

What would be cost of equity from new common stock : What would be the cost of equity from new common stock?

Effective corporate compliance plan : What are the advantages and disadvantages of creating and effective corporate compliance plan?

The company goes through with recapitalization : Repeat part (a) assuming that the company goes through with recapitalization. What do you observe?

What is the firm weighted cost of capital : What is the firm's weighted cost of capital if the marginal pretax cost of debt is 10 percent and the cost of equity is 12 percent?

User Account

All Pages