Dedicated to circuit board design and fabrication

Assignment Help Financial Management
Reference no: EM13932633

Nordique Fab is an Arizona company dedicated to circuit board design and fabrication. It has acquired new stations and software for its three facilities at a cost of $450,000 per site. The estimated MV for each system the fourth year is expected to be 5% of the total capital investment, at which time the systems will be sold. The company believes that use of the new systems will enhance their circuit design business resulting in annual income of $1,000,000. Annual operating and maintenance costs will be approximately $220,000. The company's marginal effective tax rate is 35% and the MARCS depreciation method (5 year GDS recovery period) will be used. Determine the after tax cash flow for this project. If the after tax MARR is 20% per year, would you recommend this investment?

Reference no: EM13932633

Questions Cloud

Service department charges in divisional income statements : Service Department Charges In divisional income statements prepared for Mills Construction Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll checks, and the Purchasing Department costs are ..
Describe state health department emergency preparedness : Explain the role you might play on the team given your professional health track and preparation (health educator or public health practitioner). Why is this role important? What would happen if no one fulfilled this role?
What is the patient or customer value proposition : Research a hospital or health system and review their website and advertising. Who is their target audience?  What is the patient/customer value proposition
Determine whether it is undervalued or overvalued : A manager believes his firm will earn an 18% return next year. His firm has a beta of 1.75, the expected return on the market is 13% and the risk free rate is 5%. Compute the return the firm should earn and determine whether it is undervalued or over..
Dedicated to circuit board design and fabrication : Nordique Fab is an Arizona company dedicated to circuit board design and fabrication. It has acquired new stations and software for its three facilities at a cost of $450,000 per site. The estimated MV for each system the fourth year is expected to b..
Discussions of genetics and human behavior : Until recently, the "nature vs. nurture" argument has dominated social work discussions of genetics, human behavior, and development. For this week's discussion: Discuss why this argument is too simplistic and reductionistic to reflect current knowl..
Firm been decreased by the expected bankruptcy costs : Custer's has bonds outstanding with a face value of $162,000 that are selling at par. It also has 10,000 shares of stock outstanding that are selling for $32.30 a share. The all-equity value of the firm is $455,000. The tax rate is 35 percent. By wha..
What is the market value of the firm : Bart's Mart will have a value of $41,000 if the economy does well this next year and a value of $32,000 if the economy does poorly. The probability of a good economy is 65 percent. The firm owes its bondholders $12,000. What is the market value of th..
Presence of marketing synergies will produce : Nora Fashion Corp. is thinking to acquire Sally Shoes Corp. The presence of marketing synergies will produce an estimated additional value of $9,259,259. The gain from the synergies will be shared equally between the shareholders of two companies. Ho..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the total opportunity cost for a month based

The Timberline firm expects a total cash need of 12, 500 over the next 3 month. They have a beginning cash balance of 1,500, and cash is replenished when it hits zero. The fixed cost of selling securities to replenish cash balances is 3.50. What is t..

  Research and analyze the global equity and bond markets to

research and analyze the global equity and bond markets to create an faq sheet that could be given to prospective

  Social-moral-environmental and ethical issues

Social, moral, environmental and ethical issues are part of the investment process and cannot be ignored by financial planners / managers. The burden of these costs fall unevenly on different firms. Some of these firms, especially the large companies..

  Desires a weighted average cost of capital

Central Systems, Inc. desires a weighted average cost of capital of 8 percent. The firm has an after-tax cost of debt of 6 percent and a cost of equity of 12 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted aver..

  1 assume that you have tried three different forecasting

1 assume that you have tried three different forecasting models. for the first the mad 2.5 for the second the mse

  Assume the market price of a 5-year bond for margaret inc

assume the market price of a 5-year bond for margaret inc. is 900 and it has a par value of 1000. the bond has an

  What is the firms optimal capital structure

A clinic has obtained the following estimates for its costs of debt and equity at various capital structures: What is the firm’s optimal capital structure? Calculate its corporate cost of capital at each structure.

  Under the concept of an efficient market

Under the concept of an efficient market, a random walk in stock prices means that:

  What is the current yield or cost of the preferred stock

Wallace Container Company issued $100 per value preferred stock 10 years ago. The stock provided a 9 percent yield at the time of issue. The preferred stock is now selling for $68. What is the current yield or cost of the preferred stock?

  The issuance of bonds to raise capital for a corporation

The issuance of bonds to raise capital for a corporation: The discount rate used to value a bond is: If the market price of a bond increases, then:

  Long-term government bonds are normally distributed

Suppose the returns on long-term government bonds are normally distributed. Assume long-term government bonds have a mean return of 6.7 percent and a standard deviation of 10 percent. What is the probability that your return on these bonds will be le..

  Explain what is the net income of the firm for the year

cost of goods sold, $450,000 in operating expenses (including a depreciation expense of $150,000), with a tax liability equal to 35% of the firm's taxable income. What is the net income of the firm for the year?

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