What is the projects npv, BUS 351 Montana State University

What is the projects npv

Reference no: EM133264352

Question: A company is considering the purchase of new equipment with a cost of $425,000. It will be eligible for 100 percent bonus depreciation. The equipment can be sold for $45,000 at the end of the project in 5 years. Sales would be $275,000 per year, with annual fixed costs of $47,000 and variable costs equal to 35% of sales. The project would require an investment of $25,000 in NWC that would be returned at the end of the project. The tax rate is 21 percent and the cost of capital is 9 percent.

What is the project's NPV? (In addition to NPV, you need to submit a schedule that includes subtotals for EBIT, net income, OCF, and Free Cash Flows.)

Reference no: EM133264352

Questions Cloud

What is the basis for these beliefs : What is the basis for these beliefs/attitudes? Compare and contrast your original philosophy with your current philosophy

List and explain some of the risk factors associated : List and explain some of the risk factors associated with the development of PTSD following a traumatic event. What qualifies as traumatic?

What is the risk neutral probability of up move : FIN 7680 William Paterson University What is the percent of moving up when the demand is high and What is the risk neutral probability of up move

Shape chris future behaviour : Johnny has a history of resisting sitting on the carpet during circle time. He frequently walks away, attempting to play with toys in the classroom and/or readi

What is the projects npv : BUS 351 Montana State University What is the project's NPV? (In addition to NPV, you need to submit a schedule that includes subtotals for EBIT, net income

Briefly explain what each ancient thinker saw : Briefly explain what each ancient thinker saw as the primary barrier to true wisdom and how they attempted to overcome those barriers

What impact the crisis would have on a forecasters ability : FINANCE GF582 Purdue Global University what impact the crisis would have on a forecaster's ability to analyze and forecast future trends

Compute the six-month synthetic forward price : FIN 3305.501 University of Texas, Dallas List the transactions you need to take in the spot and money market to construct a synthetic long forward on this stock

Create a source code to find hash- python program : Create a Source Code to Find Hash- Python program to find the SHA-1 message digest of a file. Explain the code functionality in detail

User Account

All Pages