What is the terminal value of the project

Assignment Help Business Management
Reference no: EM132558436

You are a project manager. You are estimating the cash flows of a potential project that requires an investment of $400,000 in a machine, including installation cost, and $60,000 in working capital, which will be fully recaptured at the end of the project. The machine has an estimated life of seven years and will be depreciated via the simplified straight-line method. The project is expected to raise the firm's annual revenues by $330,000 and increase annual costs by $125,000. The machine you purchase for the project can be sold for $70,000 in seven years. The firm has a marginal tax rate of 40%. What is the terminal value of the project?

Reference no: EM132558436

Questions Cloud

Find what know from study of management accounting : Find what you know from your study of management accounting, why is this bad advice? How would you respond to this issue?
What is the internal rate of return of investment : The firm's cost of capital is 14 percent, and the marginal tax rate is 40%. What is the internal rate of return of this investment?
What is the journal entry to record the application : What is the journal entry to record the application of Factory Overhead (FOH) into production? What is the journal entry to record the transfer
What is the net present value of the project : A firm is considering a capital budgeting replacement project with an initial outlay of $250,000, which includes both an after-tax
What is the terminal value of the project : You are a project manager. You are estimating the cash flows of a potential project that requires an investment of $400,000
What is the annual net cash flow per year : The marginal tax rate is 34%. What is the annual net cash flow per year from this project?
Provide journal entries for purchase and use of raw material : Provide Journal Entries for The purchase and use of raw materials. Lido Company's standard and actual costs for the most recent period
Initial outlay of project to replace old equipment : What is the initial outlay of this project to replace old equipment?
What is the payback period : Anderson, Inc. is considering a project with an initial cost of $28,000. The project will produce cash inflows of $9,000

Reviews

Write a Review

Business Management Questions & Answers

  Difference college success and career success

What is the difference college success and career success? does a degree give you an edge over others?

  Outline what information you will include in presentation

As part of the Hospital's orientation program, you provide an overview of the compliance program to new employees. Outline what information you will include in

  Geriatric case management bio-psycho-social assessments

Write a paper based on 1 of the following geriatric case management bio-psycho-social assessments:

  What would be some political dimensions

What would be some political dimensions and factors affecting a small business that has a clothing line that supports womens' rights and equality?

  Market if the price for pears went up

In a competitive market for apples, what would happen in the short and long run to the market if the price for pears went up?

  Example of about culture and change

Theree example of about culture and change, Use at least three citations from different sources. List your references.

  Negotiations with the palestinians

From the perspective of an Israeli statesman, the United States would be the most suitable listed organization/state to serve as a mediator in the next round of negotiations with the Palestinians over the issue of statehood for the Palestinians, a..

  Problem regarding the network security

As a corporatenetwork administratorthe industry standard suggests your job is to maintain the confidentiality, availability, and integrity of all network resources. Choose an attack that affects one (1) of the three (3) areas in question. Describe..

  Numbers for the two values and that the numbers

You may assume that the user enters numbers for the two values and that the numbers are not negative.

  Read in a line of text characters

Write a program, which will ask for and read in a line of text characters. The program will then determine if the line of text forms a palindrome and print whether it is or not. After printing this message, the program will ask for another line of..

  Discuss the different characteristics of a group

Discuss the different characteristics of a group (goal orientation, interdependent, interpersonal interaction, perception of membership

  Describe hrs role in supporting organizational development

Describe HRs role in supporting organizational development and change management - build upon their observations and move the discussion toward a description

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