What is the year three cash flow

Assignment Help Financial Management

Reference no: EM131948936

Jack Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 3 cash flow? Show work.

Equipment cost (depreciable basis) $95,000

Sales revenues, each year $65,000

Operating costs (excl. deprec.) $25,000

Tax rate 40.0%

Reference no: EM131948936

Questions Cloud

What is the frequency reuse distance for configuration : Telecommunication Modelling and Simulation - What is the frequency reuse distance for configuration and what basis did you make your choice

Create brief history of the two traditions : Create brief history of the two traditions and a comparison of their approach to Bible, art, specific symbols, and rituals, as well as core beliefs, and ethics.

Calculate the NPV of this credit decision : Market research estimates that there is a 39% chance that BigBag will pay in full what it owes. calculate the NPV of this credit decision?

Develop a comparative analysis between the three religions : Develop a comparative analysis between the three religions and draw upon the main similarities and differences that are evident from research.

What is the year three cash flow : Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 3 cash flow?

Quoted yield is before tax and credit risk adjustments : Because the quoted yield is before tax and credit risk adjustments, Ye is interested in determining which of these two bonds is best.

Expenditure on social assistance may not be viable : Expenditure on social assistance may not be viable in the longer term and derail fiscal policies in South Africa, if it is not managed carefully.

Examine several queue operating characteristics : The aquarium's manager wants to make the arrival process as convenient as possible for the patrons and so wishes to examine several queue operating

What is the net investment : If Trist Inc. has a marginal tax rate of 40 percent, what is the net investment (NINV)?

User Account

All Pages