What is the year two cash flows
Course:- Financial Management
Reference No.:- EM13942996

Assignment Help
Assignment Help >> Financial Management

Trinadad Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life and the allowed depreciation rates, (MACRES) for such a property are 33%, 15%, and 7% for years 1-4. Revenues and other operatating costs are expected to be constant over the project's 10 year life-span. What is the year 2 cash flows? considering 14% Macres

Equippment cost: $65,000

Shipping cost: $10,000

Sales revenues per year: $60,000

Operating costs (excluding depreciation) $25,000

Tax Rate 35%

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Super Sonics Entertainment is considering buying a machine that costs $660,000. The machine will be depreciated over four years by the straight-line method and will be worthle
Union Local School District has bonds outstanding with a coupon rate of 3.7 percent paid semiannually and 26 years to maturity. The yield to maturity on these bonds is 4.3 per
Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.65, but management expects to reduce the payout by 4 percent per year indefinitely. If yo
Six years ago the Camargo Company issued 20 year bonds with a 14% annual coupon rate and $1,000 par value. Interest is paid annually. The bonds had a 9% call premium with 5 ye
JJ industries will pay a regular dividend of $2.40 per share for each of the next four years. At the end of the four years, the company will also pay out a $40 per share liqui
Suppose you are considering buying a new car. You are going to make monthly payments (at the end of each month) on a loan of $33,000 for five years. If the annual percentage r
You have a portfolio with a beta of 1.78. What will be the new portfolio beta if you keep 91 percent of your money in the old portfolio and 9 percent in a stock with a beta of
Grandpa Russ thinks he needs a fixed income for the next 10 years. He currently has $10,000 in CDs, which are maturing at the end of this month. What is the maximum price you