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!
Chase manufacturing inc. is considering the purchase of a new super computer for $120,000. the purchase of this compurter will result in an increase in earnings before interest and taxes of $25,000 per year. To the computer properly, workers would have to go through a brief training session that would cost $1,200 after taxes. It would cost $2,000 to install the computer properly. Also, because the machine is extremely efficient, its purchase would necessitate an increase in inventory of $10,000. This computer has a useful life of 5 years after which it will have no salvage value. Finally to purchase the new computer, it appears that the firm would have to borrow $50,000 at 7% interest from its local bank, resulting in additional interest payments of $3,500 per year. Assume simplified straight line depreciation and that the machie is being depreciated down to zero, a 34% marginal tax rate, and a required rate of return of 10 percent.
A. what is the initial outlay associated with this project?B. what are the annual after-tax cash flows associated with this project for years 1-4?C. What is the terminal cash flow in year 5 (what is the annual after-tax cash flow in year 5 plus any additional cash flows associated with the termination of the project)?D. Should the machine be purchased?
What is a venture's life cycle? What are the various stages in the life cycle and what are the important activities in each stage? How can this concept be used in the financial planning and management of a small business.
What is time value of money? Why is it important in finance? Discuss about different types of time value of money problems.
The ABC Corporation is considering construction of a new shipping depot for its single manufacturing plant. The initial cost of the investment is $1 million.
Subsidiary A of Mega Corporation has net inflows in Australian dollars of A$1,000,000, while Subsidiary B has net outflows in Australian dollars of A$1,500,000.
You get same prize but the choice changes to $5,000 now or $5,500 in three years. What do you do? Describe the time value of money using this scenario as an example.
How is a lessee's capital lease similar to, and different from, purchasing the equipment using the proceeds of a loan repayable in installments?
A Corporation issued 10 percent, 10-year, $10,000,000 par value bonds that pay interest semiannually on April 1 and October 1. The bonds are dated April 1, 2004 and are issued on that date.
What is the standard deviation of a two-asset portfolio if one of the assets has a standard deviation of 0.30, the other asset has a standard deviation of 0.15, and the correlation coefficient between the two assets is 0.15 if ten percent of the p..
Was the overall result favorable or unfavorable? On average, it was able to collect $55 per flu shot and $70 per flu patient. Compute the volume, mix, and price revenue variances. How did things turn out for the group considering just revenues? H..
Consider the following Khols Corporation bond: a 7.375%, Oct 15, last price 110.01, last yield 4.991. Assuming a $1,000 par value, what is the bond's semi-annual interest payment and current price? (A)$45, $1,376.25 (B)$36.88, $1,100.10 (C)$125, $..
Suggest the potential benefits of the domestic securities markets to those investing in the foreign securities markets. Provide a specific example to support your response.
Determine characteristic of a defined benefit retirement plan.
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