Computing project-s terminal year cash flow

Assignment Help Project Management

Reference no: EM1337667

1) Grant Publishing just undertook a project that required a $340,000 investment in NOWC, which will be recovered fully at the end of the project's life in five years. At that time, the required equipment will not be depreciated fully and still will have a book value of $100,000. The firm's tax rate is 40%. If the salvage value at the end of five years turns out to be $100,000, what ill be the project's total termination cash flow?

2) Suppose that in five years, Grant Publishing actually is able to get $140,000 for the equipment even though it has a book value of only $100,000. What is the project's terminal year cash flow now?

3) Now suppose the equipment gets sold for $30,000 in five years. What is the project's terminal year cash flow now?

Reference no: EM1337667

Questions Cloud

Competition and considering the future via forecasting : Now that you have studied economic indicators, it's time to turn your attention to competition and considering the future via forecasting. Prepare a report detailing the following.

Explain description of shaping the market offering : Explain description of Shaping the Market Offering and Start now by developing an outline for the following product

Drawbacks of working with multiple tables : rePresent an instance of a situation where multiple tables would be appropriate in an application and discuss why this approach is needed in this scenario.

Names such as ithaca hours and dillo hours : About 30 US localities circulate their own currency with names such as "Ithaca Hours" and Dillo Hours." Doing so is perfectly legal

Computing project-s terminal year cash flow : Now suppose the equipment gets sold for $30,000 in five years. What is the project's terminal year cash flow now?

Explain product mix decisions : Explain Product Mix Decisions and what are the production levels for the three products under the present constraint on plant capacity that will maximize total contribution

Explaining the vulnerability of mesopotamia : Determine why Mesopotamia was so vulnerable.

Solve for ev, maxi-max, maxi-min : Solve for EV, Maxi-Max, Maxi-Min

Computing optimal production size for fertilizer : Compute the optimal production size for the fertilizer.

User Account

All Pages