What is your cash flow in time for this investment

Assignment Help Financial Management

Reference no: EM131336203

You are working on a bid to build two apartment buildings a year for the next 5 years for a local college. This project requires the purchase of $750,000 of equipment that will be depreciated using 5 year MACRS. The equipment can be sold at the end of the project for $325,000. You will also need $146,000 in net working capital over the life of the project. The fixed costs will be $628,000 a year and the variable costs will be $1,298,000 per building. What is your cash flow in time 0 for this investment?

Reference no: EM131336203

Questions Cloud

Compute the future value in year : Compute the future value in year 9 of a $4,500 deposit in year 1 and another $4,000 deposit at the end of year 5 using an 9 percent interest rate.

Explain how the practice of corporate takeovers : Explain how the practice of corporate takeovers was arguably collectively irrational if we suppose that the corporation’s ultimate objective is long-term growth (and, hence, profitability).

Companies perceived to be underperforming : How did a focus on stock price specifically figure into the strategy of taking over, or threatening to take over, companies perceived to be underperforming?

What is the aftertax salvage value of that machine : Three years ago, Green Glass purchased a machine for a 3-year project. The machine cost 868,000 and is being depreciated using MACRS 3 year class (use table in previous question) Today, the project ended and the machine was sold for 90,000. What is t..

What is your cash flow in time for this investment : You are working on a bid to build two apartment buildings a year for the next 5 years for a local college. This project requires the purchase of $750,000 of equipment that will be depreciated using 5 year MACRS. You will also need $146,000 in net wor..

What is the collection forecast : Use the data below from a company 's sales for January to April to get a forecast for the collection forecast, including cash sales, for April: Month Sales. Of the sales above, 30% are for cash and 70% are for credit. Of the credit sales, 58% are col..

What will these equal payments be : Dave purchased a new house for $170000. He put 30000 down and agreed to pay the rest over the next 20 years in 20 equal end-of-year payments plus 7% compound interest on the unpaid balance. What will these equal payments be?

What will be the price of the company shares : Boondocks Inc. has 30 million shares outstanding at a price of $40 each. The company is planning a seasoned equity offering (SEO). It will issue an additional 10 million shares at a subscription price of $32. How many new shares can she buy in the S..

User Account

All Pages