What would be the required minimum annual after tax revenues

Assignment Help Financial Management
Reference no: EM131607902

You are considering purchasing a CNC machine which costs $130,000. This machine will have an estimated service life of 12 years with a net after tax salvage value of $13,000. It's annual after tax operating and maintenance costs are estimated to be $57,000. To expect an 17% rate of return on investment, what would be the required minimum annual after tax revenues?

Reference no: EM131607902

Questions Cloud

Discuss the issues-programmer responsibility and liability : As a programmer in industry, you may develop software that could affect people's health or even their lives. Suppose a software bug in one of your programs.
What is your sale price : The system's suggested retail price is $4,100, but you are willing to sell it today for $3,000 cash. What is your sale price
What transactions increase or decrease owner equity : What transactions increase or decrease owner's equity? How does net income or loss affect owner's equity
Research from the csu-global library : Respond to the following scenario using research from the CSU-Global library. Include scholarly sources and use examples from our course material
What would be the required minimum annual after tax revenues : what would be the required minimum annual after tax revenues?
Discuss the meaning of each of the given names : Discuss the meaning of each of the following names: stdin
Concepts and find a related article at new york : Select one of these concepts and find a related article at the New York Times: http://www.nytimes.com/ (Links to an external site.) Links to an external site
Time value of money-capital spending for health care : what would be the amount per capital spending for health care in 5 years?
What types of development opportunities : Find a campus recreational sport program and find out what types of development opportunities they offer their student employees.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the cash flow to stockholders

Volbeat Corp. shows the following information on its 2015 income statement: sales = $403,000; costs = $305,000; other expenses = $7,900; depreciation expense = $18,200; interest expense = $13,800; taxes = $20,335; dividends = $11,000. What is the 201..

  About the present value of the annuity

A 20-year annuity pays $1,200 per month and payments are made at the end of each month. If the interest rate is 13% compounded monthly for the first eight years and 7% compounded monthly thereafter, what is the present value of the annuity? What woul..

  Find the redemption amount on this bond

A $2,500 6.5% eight-year bond has annual coupons. If it is purchased for $2,590, the investor will anticipate a 5.4% annual yield for the eight-year investment. Find the redemption amount on this bond.

  Effective cost of trade credit

The D.J. Masson Corporation needs to raise $700,000 for 1 year to supply working capital to a new store. Masson buys from its suppliers on terms of 3/10, net 90, and it currently pays on the 10th day and takes discounts. However, it could forgo disco..

  Whats the bonds current yield and whats capital gain yield

Find the yield to maturity for a 20 year, 6% annual coupon rate, $1,000 par value bond if the bond sells for $1,185 currently? We assume that interest is paid on this bond every six months. (2) what's the bond's current yield? What’s its capital gain..

  Relation between portfolio risk and the risks of asset a

What is a cognitive bias and how might it affect investors' decision making?- What does this tell us about the correlation coefficient for their returns?

  What conditions would the simple interest rate or apr

Under what conditions would the simple interest rate, or APR, equal the effective annual rate, rEAR? Explain

  Flecibility issues-sources of equity and bonds pay interest

A firm's dividend policy impacts the firm's ability to fiance through. If the bond's coupon rate is GREATER than the general interest rates in the market, the bond will sell at a. flecibility issues are those which. Sources of equity are. most bonds ..

  Convertible monthly for the entire life of the loans

If his loans had a fixed nominal rate of 7.8% convertible monthly for the entire life of the loans, what was be the size of his first payment?

  Contributory or comparative negligence theory

Does your home state's jurisdiction follow a contributory or comparative negligence theory? How does this impact the outcome of lawsuits?

  How much will you pay in capital gains taxes

If you buy a home for $100,000 Mortgage, Insurance & Taxes costs you $1,000 a month Your Mortgage interest rate is 4% and you had a down payment of $3,000 It costs you roughly $3,000 a year for maintenance and upkeep. You sell your home after 5 years..

  Boulder furniture has bonds outstanding that mature

Boulder Furniture has bonds outstanding that mature in 15 years, have a 6 percent coupon, and pay interest annually. These bonds have a face value of $1,000 and a current market price of $1,075. What is the company's aftertax cost of debt if its tax ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd