Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A small factory is considering replacing its existing coining press with a newer, more efficient one. The existing press was purchased three years ago at a cost of $210,000, and it is being depreciated according to a 7-year MACRs depreciation schedule. The CFO estimates that the existing press has 5 years of useful life remaining. The purchase price for the new press is $305,000. The installation of the new press would cost an additional $35,000, and this cost would be added to the depreciable base. The new press (if purchased) would be depreciated using the 7-year MACRs depreciation schedule. Interest expenses associated with the purchase of the new press are estimated to be roughly $6,900 per year for the next 5 years. The appeal of the new press is that it is estimated to produce a pre-tax operating cost savings of $69,000 per year for the next 5 years. Also, if the new press is purchased, the old press can be sold for $40,000 today. The CFO believes that the new press would be sold for $45,000 at the end of its 5-year useful life. Assume that NWC would not be affected. The company has an average tax rate of 29% and a marginal tax rate of 33%. The cost of capital (i.e., discount rate) for this project is 10%.
Develop the incremental cash flows for this replacement decision and use them to calculate NPV and IRR.
Stephan and Chris have decided to acquire CellU in order to expand TechU’s product line. They are trying to decide how to finance the acquisition, and are currently looking at financing it by issuing bonds. TechU just issued an 18-year, 12 percent co..
Aqua System Inc. expects to have $18,526,400 in credit sales during the coming year. Currently all checks are sent to the home office. A proposed lockbox system can eliminate 1 days of float, releasing funds which, when invested, will earn 12.10 perc..
Purple Dalia, Inc. has the following balance sheet statement items: total current liabilities of $661,707; net fixed and other assets of $1,460,400; total assets of $3,334,150; and long term debt of $744,753. What is the amount of the firms’ total st..
You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and $300 a month in a bond account. The return of the stock account is expected to be 11% APR compounded monthly, and the bond..
What has been the most significant financing activity for the company in requirements 2-6 for another company?
Calculating liquidity ratios: SDJ inc has net working capital of $1920, current liabilities of $4380, and inventory of $3750. What is the current ratio? What is the quick ratio?
which security has the greatest total risk? Explain which security has the least systematic risk? Explain which securities' volatility are greater than that of the market explain. which security will require the greatest return ? Explain
The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of $102,000 for the firm during the first year, and t..
blades plc is a u.k.-based company that has been incorporated in the united kingdom for three years. blades are a
You are a manager in a fictitious company of your choice. Your director has asked you to explain to the department staff the different types of budgets and techniques in order to provide an overall understanding. What are the various kinds of budgets..
Portfolio Weights If you own 270 shares of Air Line Inc at $18.95, 170 shares of BuyRite at $9.9, and 370 shares of Motor City at $45.95, what are the portfolio weights of each stock?
A company XYZ is considering manufacturing a product in space. The project lifetime is 10 years and has the following consecutive phases: Phase 1 (years 1 to 3): The engineering design and development requires 3 years. what is the present value of th..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd