Whitsitt inc has provided the following data to be used in

Reference no: EM13607353

Whitsitt Inc. has provided the following data to be used in evaluating a proposed investment project: Initial investment $910,000 Annual cash receipts 425,000 Life of the project 7 years Annual cash expenses 230,000 Salvage value 84,000 The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value. The company uses a discount rate of 16%.

a. What is the depreciation tax shield?

b. What are the annual after-tax cash flows?

c .What is the after-tax cash flow from the salvage value in the final year?

e. What is the net present value of the project?

f. What would the annual soft benefits have to be for the company to accept the project?

Reference no: EM13607353

Questions Cloud

What is the mean time until a packet is formed that is : in a data communication system several messages that arrive at a node are bundled into a packet before they are

The pressure ratio is 6 and air leaves the combustion : an ideal cold air-standard brayton cycle engine operates with air entering the compressor at 27 c. the pressure ratio

As a laudably skeptical physics student you want to test : as a laudably skeptical physics student you want to test coulombs law. for this purpose you set up a measurement in

Total costs were 75800 when 30000 units were produced and : total costs were 75800 when 30000 units were produced and 95800 when 40000 units were produced. use the high-low method

Whitsitt inc has provided the following data to be used in : whitsitt inc. has provided the following data to be used in evaluating a proposed investment project initial investment

What is the mean time until a packet is formed that is : in a data communication system several messages that arrive at a node are bundled into a packet before they are

For circular parallel plate capacitor whose radius is 01 m : for circular parallel plate capacitor whose radius is 0.1 m and which the separation between the plates is 2mm what is

List the compressibility factors for air nitrogen oxygen : air is made up of nitrogen oxygen carbon dioxide argon water vapor and some other stuff in really small amounts. list

Caliente company uses process costing at the beginning of : caliente company uses process costing. at the beginning of the month there were 3000 units in process 70 complete with

User Account

All Pages