What is the total value of the terminal year non-operating

Reference no: EM13273440

You are evaluating the proposed acquisition of a new computer. The computer's price is $40,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net operating working capital of $ 4 ,000. The computer would increase the firm's before-tax revenues by $20,000 per year but would also increase operating costs by $5,000 per year. The computer is expected to be used for 3 years and then be sold for $ 19 ,000. The firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent.

What is the total value of the terminal year non-operating cash flows at the end of Year 3? Round it to a whole dollar, and do not include the $ sign.

Year	MACRS Percent
1	0.33
2	0.45
3	0.15
4	0.07

Reference no: EM13273440

Questions Cloud

What is the direction of of the balls impuse : Atennis ball of mass 5.5*10-2and a speed of 39 M/s strikes a wall at a 45 degree angle, what is the direction of of the balls impuse in relation to the wall

What is the spinning rate now : bob whose mass is 36 kg stands at the center of a 200 kg merry-go-round that is spinning at 30 rpm. What is the spinning rate now

Compute the angulat momentum of a frisbee of mass : Compute the linear momentum and angulat momentum of a Frisbee of mass 0.16 kg. if it has a linear speed 0f 2.0 m/s and an angular velocity of 50 rad/s

What was the company operating income : New Mexico Lumber recently reported that its earnings per share were $ 5 .00. The company has 6 00,000 shares of stock outstanding. The company's interest expense was $ 3 00,000. The corporate tax rate is 40 percent. What was the company's operati..

What is the total value of the terminal year non-operating : The firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent. What is the total value of the terminal year non-operating cash flows at the end of Year 3? Round it to a whole dollar, and do not include the $ sign.

What is the magnitude of that leaves the system : During a Carnot cycle, in the first process, an ideal gas is expanded isothermally at 500 K. 1,000 J of heat enters the system, What is the magnitude of Q that leaves the system

Ethical behavior solely for the purpose getting publicity : Mega corporation engages in ethical behavior solely for the purpose getting publicity and thereby getting good publicity and increasing profits

Briefly compare the conventional marketing channel : Briefly compare the conventional marketing channel with the vertical marketing system. Be sure to examine the types of VMS that exist, along with the differences between them and their relative strengths and weaknesses.

What is the apr and epr for this loan : You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $3,200,000 purchase price. The monthly payment on this loan will be $15,300. What is the APR and EPR for this loan?

User Account

All Pages