What will be the cash flows for the project

Reference no: EM131796048

Question: Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully-depreciated vans, which you think you can sell for $4,000 apiece and which you could probably use for another 2 years if you chose not to replace them. The NV vans will cost $39,000 each in the configuration you want them, and can be depreciated using MACRS over a 5-year life. Expected yearly before-tax cash savings due to acquiring the new vans amounts to about $4,700 each. If your cost of capital is 8 percent and your firm faces a 35 percent tax rate, what will the cash flows for this project be? (Round your answers to the nearest dollar amount.)

Year	0		1		2		3		4		5		6
FCF	$		$		$		$		$		$		$

Reference no: EM131796048

Questions Cloud

Distinguishing features of life cycle costing : Include the following items in your presentation. Distinguishing features of life cycle costing. Advantages and disadvantages of life cycle costing. Example(s).

Discuss effective-interest method of amortization for bond : Celine Dion Company uses the effective-interest method of amortization for bond premium or discount

Make the journal entries to record the pension expense : Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years

Number of points michael jordan : The number of points Michael Jordan scored in games he played for the Chicago Bulls follows a normal distribution with a mean of 31.5 pts/game and a standard.

What will be the cash flows for the project : Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully-depreciated vans.

What would you suggest as five roles for internal auditor : What would you suggest as at least five roles for the internal auditor in a retail company, exclusive of helping external auditors?

Evaluate the effectiveness of the accounting principle : Evaluate the effectiveness of the accounting principle guidelines for determining the market value of an asset

Calculate the probabilities : For a randomly selected hour next week, calculate the following probabilities, using the poisson distribution. Show all work.

Identify an ethical issue within this case study : Review the case study in the text, "Guerrilla Government in EPA's Seattle Regional Office." Identify an ethical issue within this case study.

User Account

All Pages