User Account

All Pages

What is the projects free cash flow in year 1

Assignment Help Finance Basics
Reference no: EM13257594

Vandelay Industries is considering a new project with a 4-year life with the following cost and revenue data. This project will require an investment of $140,000 in new equipment. This new equipment will be depreciated down to zero over 4 years using the simplified straight-line method and has no salvage value. This new project will generate additional sales revenue of $112,000 while additional operating costs, excluding depreciation, will be $68,000. Vandelay' s marginal tax rate is 35%. What is the projects free cash flow in year 1?

Reference no: EM13257594

Questions Cloud

History and culture of city : The final paper should contain a minimum of 4 sources including at least one book; internet sources may include newspapers, magazines, and historical web sites.
Elements of the accounting environment : What are the elements of the accounting environment? How do they affect the financial statements? Why are these elements important? How do they affect comparability between companies?
Calculate the gain or loss on the sale of the asset : Blue should have taken $455 and $3,636 cost recovery in 2005 and 2006. On January 1, 2007, the asset was sold for $98,000. Calculate the gain or loss on the sale of the asset in 2007.
Calculate annual cost if motor runs 24 hrs 300 days a yr : Induction motor Y connection at 60Hz with the following: A.) 400 kVA induction motor running at 80% load with effeciency of 96% and p.f.=.88 b.) 40kW resistance heating source
What is the projects free cash flow in year 1 : This new project will generate additional sales revenue of $112,000 while additional operating costs, excluding depreciation, will be $68,000. Vandelay' s marginal tax rate is 35%. What is the projects free cash flow in year 1?
Setting financial accounting standards : The private sector organization currently responsible for setting financial accounting standards in the United States.
Does other charges get added to purchase price : Company owned vehicle -Fixed asset being traded in for another vehicle. Does the Other Charges get added to the purchase price or classed out to fees?
Variance amount-variance percentage : What is the variance amount? What is the variance percentage? Is the variance favorable orunfavorable?
What would make for a larger increase in the stock variance : What would make for a larger increase in the stock's variance: an increase of .15 in its beta or an increase of 3% in its residual standard deviation?

Reviews

Write a Review

Finance Basics Questions & Answers

  Compare long-term instruments and short-term risks

Compare long-term instruments and short-term risks, in terms of the various types of risk to which investors are exposed. Explain your answers.

  Traditional financial and derivative financial instruments

Illustrate out the term underlying as it relates to derivative financial instruments? Write down the main distinctions between a traditional financial instrument and a derivative financial instrument?

  What are the arguments for and against taking that position

Do you think a government should consider human rights when granting preferential trading rights to countries? What are the arguments for and against taking that position.

  Future value-annuity versus annuity due

Find out the future value of 7 percent, 5-year ordinary annuity which pays $300 each year?

  Fundamental change in economy from consumer savings

Do you think this will have an impact on future consumer spending. With U.S. consumer representing approximately 70% of our GNP - will this fundamentally change our economy when the consumer saves more in future?

  Describe stock valuation with constant growth rates

Describe Stock Valuation with constant growth rates in the dividends and Constant growth valuation Thomas Brothers is expected to pay a $3 per share dividend at the end of the year

  Effect of currency appreciation

Suppose that one swiss franc could be purchased in the foreign exchange market for $0.60 today. If the franc appreciated 10% tomorrow against the dollar, how many francs would a dollar buy tomorrow?

  Calculating risk premium

Suppose if WalMart has a beta of 1.1, current risk-free rate is 3.5%, average risk free rate over the last 70 years is 3.2 percent, and the expected return on the stock market is 12.3 percent,

  Estimate the standard deviation of a portfolio

Stock X has a standard deviation of returns of 0.6, and Stock Y has a standard deviation of 0.4. The correlation of the two stock is 0.5.

  Adopting a qualified retirement plan

The employer wants to adopt a qualified retirement plan that will maximize tax-deferred retirement savings for the accountants, as well as providing adequate benefits for all employees.

  Advantages of market order, limit order, and stop order.

Discuss and explain the advantages and disadvantages of market order, limit order, and stop order.

  Compute total variable costs

Nelson Corporation manufactures running shoes. The selling price per pair of shoes averages $80 and variable costs each pair are $47.50.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd