What is the project year four cash flow

Assignment Help Financial Management
Reference no: EM131882380

Whitestone Products is considering a new project whose data are shown below. The required equipment has a 3-year tax life, and the accelerated rates for such property are 33.33%, 44.45%, 14.81%, and 7.41% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected operating life. What is the project's Year 4 cash flow? Equipment cost (depreciable basis) $70,000 Sales revenues, each year $42,500 Operating costs (excl. deprec.) $25,000 Tax rate 35.0% 

Reference no: EM131882380

Questions Cloud

Explain the impact of cultural diversity on team dynamics : Explain the impact of cultural diversity and personal beliefs on team dynamics. Why is it important that a leader commit to understanding others?
New issue of preferred stock : E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. What is the price of stock 19 years from today? What is the price of the stock today?
Explain what is your idea of a healthy community : Explain what is your idea of a healthy community? Provide specific examples. What do healthy communities have in common?
Discuss benefits to nursing satisfaction when utilize theory : Discuss Benefits to nursing satisfaction when utilizing the theory and Positive patient outcomes resulting from utilizing the theory
What is the project year four cash flow : Whitestone Products is considering a new project whose data are shown below. What is the project's Year 4 cash flow?
Colors and more is considering replacing the equipment : Colors and More is considering replacing the equipment it uses to produce crayons.
Encourage the development of child emotional : What should parents do in order to encourage the development of their child's emotional intelligence? Why is it important?
Compute basic earnings per share for the year ended : Determine the number of shares used to compute basic earnings per share for the year ended December 31, 2013
Determine the total sales and the total cost of goods sold : Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts

Reviews

Write a Review

Financial Management Questions & Answers

  Unsecured debt issued by corporations on short-term basis

Which one of the following is unsecured debt issued by corporations on a short-term basis? A $100,000 or more term deposit at a bank is called which one of the following? Which one of the following describes a banker's acceptance?

  What is the annual opportunity cost of a checking account

What is the annual opportunity cost of a checking account that requires a $300 minimum balance to avoid service charges? Assume an interest rate of 3%.

  Assembly line after taking flotation costs into account

What is the true cost of building the new assembly line after taking flotation costs into account?

  Assume perfect capital markets and no taxation

A company's debt is given by a bond that will mature in two years. After two years the company will terminate all activity. The company unlevered equity value in two years can be $17 millions with a 50% probability or $14 millions with probability 50..

  What is the present value of this investment

An investment will pay $2,565 two years from now, $3,503 four years from now, and $3,683 five years from now. If the opportunity rate is 13.86 percent per year, what is the present value of this investment?

  Calculate required rate of return

Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.5% rate of inflation in the future.

  The annual fixed cost for the catheterization lab

ROI for investment Center. A new Cardiac Catheterization lab was constructed at Have a Heart Hospital. The investment in this lab was 950,000 in equipment cost and 50,000 in renovating cost. A desired return on investment is 12 percent. The annual fi..

  How are real options important in npv decisions

Explain how real options can cause an undervaluation by the NPV framework of company's projects?. How are real options important in NPV decisions?

  Depreciation on the income statement of andrews

Last year Aft charged $2,080,000 Depreciation on the Income Statement of Andrews.

  About the expected selling price

A share of stock is now selling for $110. It will pay a dividend of $8 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 4% and the expected rate of re..

  Mature manufacturing firm

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $10.90, but management expects to reduce the payout by 5 percent per year indefinitely. If you require a return of 10 percent on this stock, what will you pay for a sha..

  Define marginal cost of capital

Indicate how these might be useful to determine the feasibility of the capital project. Define marginal cost of capital.

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