Determine the net terminal year cash flow, Macroeconomics

Assignment Help:

A company is assessing a proposed 4-year project.  The depreciable cost will involve the following: $300,000 for the equipment, $20,000 for shipping, and $30,000 for installation. The depreciation life is under the MACRS 3-year class, along with a salvage value of $45,000. The inventories will rise through $18,000 and accounts payable will rise through $3,000. In addition, the new sales are predictable to be 150,000 units per year at $2.25 per unit. There is a variable operating cost which is 60% of sales and the company's marginal tax rate is 35%.  Complete parts (a) through (c) below.

a)  Determine the net operating cash flow for the initial year (Year 0).

b)  Determine the net operating cash flow for Years 1, 2, and 3.

c)  Determine the net terminal year cash flow.

 

 


Related Discussions:- Determine the net terminal year cash flow

Assignment, derive the isoprofit functin

derive the isoprofit functin

Two coins tossed, let Y denote the number of "heads" that occur when two co...

let Y denote the number of "heads" that occur when two coins tossed. a) Derive the probability distribution of Y b) Derive the cumulative probability distribution of Y c)

Quiz, To overcome the stagnant growth it was experiencing for the past 10-1...

To overcome the stagnant growth it was experiencing for the past 10-15 years, Japan undertook which of the following measures? Answer Undertook programs to build infrastructure

Mankiw, Using the Mundell-Fleming model, describe how an increase in a coun...

Using the Mundell-Fleming model, describe how an increase in a country’s risk premium on the world interest rate can result in a higher level of real income. Under what circumstanc

Description of var, In order to observe the correlations between each varia...

In order to observe the correlations between each variable, the most effective method to use is Vector Autoregression (VAR). VAR estimation uses a system of simultaneous equations

What are the indicators of development, What are the indicators of developm...

What are the indicators of development? Economic development is a complicated multi-dimensional idea. Preferably each aspect of development needs its own indicator. • Prof

Impact of property crime to increase, Which of the following will cause pro...

Which of the following will cause property crime to increase? a) An increase in jail terms. b) A decrease in personal incomes. c) An increase in the probability of arrest.

Inflation, what are the causes of inflationary gap

what are the causes of inflationary gap

Aggregate supply and the as curve, Aggregate supply and the AS curve ...

Aggregate supply and the AS curve The AS curve is the aggregate supply as a function of P. It is horizontal when thesupply is low and upward sloping when the s

What are the contents in the market strikes back, What are the contents in ...

What are the contents in the market strikes back? a. Price controls • Price ceiling • Price floor b. Quantity controls quota c. Excise tax d. Inefficiency

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