cash flows, Other Engineering

Assignment Help:
Your company is considering a machine that will cost $6,287 at Time 0 and which can be sold after 3 years for $790. To operate the machine, $886 must be invested at Time 0 in inventories; these funds will be recovered when the machine is retired at the end of Year 3. The machine will produce sales revenues of $853/year for 3 years; variable operating costs (excluding depreciation) will be 50 percent of sales. Operating cash inflows will begin 1 year from today (at Time 1). The machine is in the 3-year MACRS class. The MACRS class has depreciation of 33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4. The company has a 42 percent tax rate, enough taxable income from other assets to enable it to get a tax refund from this project if the project''s income is negative, and a 10 percent cost of capital. Inflation is zero. What are the total cash flows in year 2?

Related Discussions:- cash flows

Electron gun, Electron gun: The electron gun consists of the following:...

Electron gun: The electron gun consists of the following: 1.  Cathode:  An indirectly heated cathode (negatively biased w.r.t. the screen). 2.  Grid:          A cylindric

Production system, Garden Variety Flower Shop uses 750 clay pots a month. ...

Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs are estimated to be 25 percent of cost, and ordering costs are $30

Spinning reticle seekers , Spinning Reticle Seekers  A spinning reti...

Spinning Reticle Seekers  A spinning reticle seeker contains a single thermal detector and a spinning patterned disk - such as the ‘Rising Sun' Reticle.   - consis

PLC, True or False, In a PLC system, there is a physical connection between...

True or False, In a PLC system, there is a physical connection between field input devices and output devices.

Electronics, explain compensated semiconductors

explain compensated semiconductors

Jfet operation - junction, JFET OPERATION Figure shows the operati...

JFET OPERATION Figure shows the operation of a JFET. The JUGFET has a physical structure that can be represented by the diagram shown in Figure. In Figure, if the N-Ty

Construction and working of electron microscope, Electron Microscope Th...

Electron Microscope The development of the electron microscope was based on theoretical work done by Louis De Broglie, who found that wavelength is inversely proportional to mo

Air flow control system – operation, Air flow control system – operation: ...

Air flow control system – operation: The stages of the compressor are matched to give the highest efficiency in the speed range maximum rev/min. To extend the range of smooth

Time motion study, how to create a chart of time motion study

how to create a chart of time motion study

LTE, WHATIS LTE CODING TECHNIQUES USE FOR MOBILE SYSTEM

WHATIS LTE CODING TECHNIQUES USE FOR MOBILE SYSTEM

Write Your Message!

Captcha
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