What are the terminal cash flows in year

Assignment Help Finance Basics
Reference no: EM131388087

Five years ago, ABC Company invested $45,018 in a machinery. The investment in net working capital was $3,406 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $16,752. The book value of the machinery is $12,595. The tax rate is 23 percent. What are the terminal cash flows in Year 5?

Reference no: EM131388087

Questions Cloud

What is the portfolio beta : Based on the following information, what is the portfolio beta?
Compute the rate of return for project : Compute the rate of return for a project that has an initial cost of $42,000 and would provide positive cash flows of $7,000 the first year, $8,000 the second year, $9,000 the third year, $10,000 the fourth year, $11,000 the fifth year, and $12,000 t..
Chart shows the actual unemployment rates : The following chart shows the actual unemployment rates and the anticipated rates of professional economists and statisticians. How does the chart help us understand the difficulties that monetary policymakers may encounter?
Can import traders recover the contract price from frederick : Frederick finally complained about the nonconformity of the pads in April of the following year, when Import Traders requested the contract price for the goods. Can Import Traders recover the contract price from Frederick?
What are the terminal cash flows in year : Five years ago, ABC Company invested $45,018 in a machinery. The investment in net working capital was $3,406 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $16,752. The book value of the machin..
Explain should the buyer prevail in given condition : One hour later, still on September 4, the seller called the buyer, retracted its earlier statement, and indicated that the machine would be ready by the agreed September 5 date. The buyer sued for the return of its $3,000 deposit. Should the buyer..
Annual operating cash flow : The depreciation expense each year is $18,938 and the tax rate is 29 percent. What is the annual operating cash flow?
Project initial investment outlay : What is the project's initial investment outlay based on the following information: The machinery could be purchased for $36,673. Shipping and installation costs would cost another $4,871.
How the goals of the fed influence its response to shocks : Let’s examine how the goals of the Fed influence its response to shocks. Suppose Fed A cares only about keeping the price level stable and Fed B cares only about keeping output and employment at their natural levels.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  What accounting standards exist that already effect banks

What must be known, estimated, and assumed to answer the research question? What would your recommendations be with respect to fair-value accounting standards for banks? Outline the basis of your recommendation.

  Retained earning at the year end

What are the earnings per share (EPS) for a company that earned Rs. 100,000 last year inafter-tax profits, has 200,000 common shares outstanding and Rs. 1.2 million in retained earning at the year end?

  The difference between total actual overhead cost incurred

question 1 the difference between the total actual overhead cost incurred during a period and budgeted total factory

  What is the value of brash’s stock

Brash Corporation initiated a new corporate strategy that fixes its annual dividend at $2.25 per share forever. If the risk-free rate is 4.5% and the risk premium on Brash’s stock is 10.8%,what is the value of Brash’s stock?

  If the sales price of the used machine was 1200 the

1 which of the following is not capitalized when a piece of production equipment is acquired for a factory?sales

  Explain recommendation for a project based on npv

Explain Recommendation for a project based on NPV and What is the project's annual after tax cash flows for years

  What is the mean for the log price relative

1. The mean rate of return on a stock is estimated at 20% while the volatility is 40%: The risk free interest rate is 5%: What is the mean for the log price relative?

  What is the equity value of the firm after refinancing

The remaining will be paid out as dividends. The firm's corporate tax rate is 20%. The discount rate for the firm is 10%.

  You want to set up an education trust for a relative

you want to set up an education trust for a relative starting in 2014. the trust will pay 25000 a year starting in

  Research tools and techniques of managing data

You have explored many options for managing data as well as its importance to the overall health of an organization in making well-informed decisions.

  Explain the reasons for the difference in criteria

Describe how capital-budgeting decision criteria would be different in a capital-rationing situation than in a situation in which capital rationing was not necessary, and explain the reasons for the difference in criteria.

  Balance sheet exposure

What is "balance sheet exposure". When converting a balance sheet from one currency to another currency what rate do we use?

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