What will be the cash flows of this project in millions

Assignment Help Financial Management

Reference no: EM131553375

Your firm is considering an overseas expansion. Below is the information that you have been given regarding the project: Initial Equipment Cost: $100m. Life of System: 5 years. Depreciation method: Straight line Depreciation. Expected overseas sales: $110m per year. Raw materials: $70m per year. Salaries for new workers: $20m per year. Net Working Capital necessary for plant to operate effectively: $25m (assume that this investment is required at the start of the project and is recovered when the plant shuts down after 5 years.) Marginal Tax Rate on income and capital gains: 40% Expected salvage value of equipment after 5 years: $30m. What will be the cash flows of this project in millions? -125/32/32/32/32/75 -100/26.5/26.5/26.5/26.5/81.5 -100/9.1/9.1/9.1/9.1/28.6 -125/26.5/26.5/26.5/26.5/71 -125/26.5/26.5/26.5/26.5/81.5

Reference no: EM131553375

Questions Cloud

Put option on stock with three months to maturity : A put option on a stock with three months to maturity has the exercise price of $60.

Which type of firm might paying dividend be good idea : For which type of firm might paying a dividend be good idea for which type of firm might paying a dividend be a good idea?

Recently issued bond with the characteristics : Duke Energy has recently issued a bond with the following characteristics: What should be the price of this bond?

Discuss the given case analysis : Mark Suturana joined the Jackson Company six months ago. He is an experienced management informationsytemsexecutivewhohas been given the task of improving.

What will be the cash flows of this project in millions : What will be the cash flows of this project in millions?

What should be the price of this bond : Your investment advisor has told you that the yield-to-maturity on this bond is 7.5%. What should be the price of this bond?

Assuming the coins appreciate at annual rate : how much will your collection be worth when you retire in 2065, assuming the coins appreciate at an annual rate of 5.1 percent?

What would be your hedged annual cash flow in dollars : using the information above what would be your hedged annual cash flow in dollars. What is a way you could hedge your exposure if you thought $ would weaken?

What was the company year-end debt-assets ratio : DEBT RATIO Last year K. Billingsworth & Co. had earnings per share of $4 and dividends per share of $2. Total retained earnings increased by $12 million.

User Account

All Pages