+1-415-670-9189
info@expertsmind.com
Contemplating replacing current fleet of delivery vehicles
Course:- Financial Management
Reference No.:- EM13942986




Assignment Help
Assignment Help >> Financial Management

Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully-depreciated vans, which you think you can sell for $3,800 apiece and which you could probably use for another 2 years if you chose not to replace them. The NV vans will cost $37,000 each in the configuration you want them, and can be depreciated using MACRS over a 5-year life. Expected yearly before-tax cash savings due to acquiring the new vans amounts to about $4,500 each. If your cost of capital is 12 percent and your firm faces a 35 percent tax rate, what will the cash flows for this project be? (Round your answers to the nearest dollar amount.)

FCF= Year 0 $-172,650.00

FCF= Year 1 $

FCF= Year 2 $

FCF= Year 3 $

FCF= Year 4 $

FCF= Year 5 $

FCF= Year 6 $




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Sheaves Corp. has a debt−equity ratio of .9. The company is considering a new plant that will cost $108 million to build. When the company issues new equity, it incurs a flota
The market consists of the following stocks. Their prices and number of shares are as follows: The price of Stock C doubles to $60, what is the percentage increase in the mark
Suppose call and put prices are given by: Strike 75 80 Call premium 7 8 Put premium 4 10. What no-arbitrage condition is violated by the call premiums? What spread position wo
Cary exchanges real estate for other real estate in a qualifying like-end exchange. Carey's basis in the real estate given up is $120,000, and the property has a fair market v
You have secured a loan from PNC Bank for two years to build a new business location. The terms of the loan are that you will borrow $125,000 now and an additional $25,000 in
Backwater Corp. has 10 percent coupon bonds making annual payments with a YTM of 9.2 percent. The current yield on these bonds is 9.55 percent. How many years do these bonds h
Gerry pays $ W to buy a ten-year annuity with end-of-year payments of $ 1,400. This purchase price allows her to replace her capital by means of a savings account that has an
Consult PCAOB Ethics and Independence Rule 3520. What is auditor independence, and what is its significance to the audit profession? Based on the case information, do you beli