Calculate the net annual benefit of the proposed

Assignment Help Finance Basics
Reference no: EM13267841

A permanent working capital investment of $60,000 is expected to produce an annual after-tax cash inflow of $18,000 for many years and has a cost of capital of 12%. Calculate the net annual benefit of the proposed permanent working capital investment.

Reference no: EM13267841

Questions Cloud

What final payment will the bank require : If the interest rate on the loan is 7%, what final payment will the bank require you to make so that it is indifferent to the two forms of payment?
Explain the growth of the white house staff : How do you explain the growth of the White House staff during the 20th Century and is this growth a positive or negative development for the presidency? Why?
Design an open-circuited shunt stub matching network : Design an open-circuited, shunt stub matching network to match a 125 + j20 ohm load to a 700 MHz, 50ohm generator. Show the lengths of your transmission lines in fractions of a wavelength.
Find the input impedance at a distance from the load : Consider a transmission line with Ro=50-ohm connected to an 850 MHz, 50ohm generator and a load ZL=75 + j10 ohm. Find the input impedance at a distance of 0.2m from the load using a Smith Chart.
Calculate the net annual benefit of the proposed : A permanent working capital investment of $60,000 is expected to produce an annual after-tax cash inflow of $18,000 for many years and has a cost of capital of 12%. Calculate the net annual benefit of the proposed permanent working capital investm..
What is the estimated annual change : What is the estimated annual change to Year 1-n cash flow due to depreciation from a capital budgeting investment costing $100,000 with a useful life of 12 years and a salvage value of $28,000? Assume a 34% tax rate and straight-line depreciation.
What is the rms value of the secondary transformer voltage : Design a full wave (60Hz) rectifier circuit with the capacitor filter that produces 5V 10A DC at the output with the ripple voltage of less than 5%. (Assume Von = 1 for the diodes and do not forget to draw your circuit and a time diagram of the vo..
What is the speed of the muon : Consider the motion of a muon as it moves through the Earth's atmosphere. After a time ? = 2.20 multiply.gif 10-6 s, What is the speed of the muon
What is the depletion layer width of the pn-junction : A pn-junction is formed in silicon by doping one side with acceptor atoms at concentration Na = 10^19 cm^(-3) and another side with donor atoms at Nd = 10^18 cm^(-3).  A. What is the dopant concentration on the p-type side and on the n-type side

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the years to maturity

My real risk-free rate is 3.50 percent, average future inflation rate is 2.25 percent, and a maturity premium of 0.10% per year to maturity applies, i.e., MRP = 0.10%(t).

  Describe the term efficient market

Carefully describe what is meant by the term efficient market. Art there different levels of market efficiency discuss those levels?

  External funding-flow of funds-interest rates

Discuss the process to calculate external funding needs and the importance to a business. Describe the importance of interest rates, and how risk is considered to businesses and economic activity.

  Calculate u d, and p for a two-step tree

Consider a European call option on a non-dividend-paying stock where the stock price is $40, the strike price is $40, the risk-free rate is 4% per annum, the volatility is 30% per annum, and the time to maturity is six months.

  Calculate earnings and dividends for the next year

The earnings per share have increase at a constant rate and will continue to do so in the future. Dividends represent 30 percent of earnings.

  Stock valuation of a company

Determine the fair market value of Apple corporation (AAPL) stock values using RIM model and Price Ratio Analysis, given that Apple does not pay dividends?

  What is the probability that we get our license

what is the probability that we get our license and the casino will be commercially viable?

  Security-confidentiality and international issues

Explain how BANK OF AMERICA site handles security, confidentiality and international issues. Please give specific responses For each part.

  Compute the covariance of return between the securities

An assignment has an expected cash flow of $300 in year 3. The risk free interest rate is 5%. The market risk premium is 8 percent. The projects Beta is 1.25. Compute the certainty equivalent cash flow for year 3.

  Acquisition of bank in developing nation

Explain the issues and risks involved with a financial institution acquiring a bank in an emerging market.

  Estimate the new beta

You hold a diversified portfolio consisting of a $5,000 investment in each of 20 different common stocks. The portfolio beta is equal to 1.15.

  What is the value of resturcturing to a firm

will be used to repurchase. Assuming that individuals have the same borrowing opportunities as coprations, explain how an investor can undo the leverage that is proposed by Magnifence Inc. Under those conditions, what is the value of resturcturing..

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