cash flows, Other Engineering

Your company is considering a machine that will cost $6,287 at Time 0 and which can be sold after 3 years for $790. To operate the machine, $886 must be invested at Time 0 in inventories; these funds will be recovered when the machine is retired at the end of Year 3. The machine will produce sales revenues of $853/year for 3 years; variable operating costs (excluding depreciation) will be 50 percent of sales. Operating cash inflows will begin 1 year from today (at Time 1). The machine is in the 3-year MACRS class. The MACRS class has depreciation of 33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4. The company has a 42 percent tax rate, enough taxable income from other assets to enable it to get a tax refund from this project if the project''s income is negative, and a 10 percent cost of capital. Inflation is zero. What are the total cash flows in year 2?
Posted Date: 4/25/2012 11:20:44 PM | Location : United States







Related Discussions:- cash flows, Assignment Help, Ask Question on cash flows, Get Answer, Expert's Help, cash flows Discussions

Write discussion on cash flows
Your posts are moderated
Related Questions
Let C(K) denote a European vanilla Call option with strike price K. Assume that all options are identical except for strike price, and strike prices satisfy (K1) What are the no-

Expertsmind.com brings you unique solution in physics Why is earth geologically active?        1- Internal Structure: -               -Core : The highest densi

Servo accelerometer Electro-mechanical servo (force balance) accelerometer uses an electromagnet to provide restoring force. The position of the seismic mass is measured by a p

JFET OPERATION Figure shows the operation of a JFET. The JUGFET has a physical structure that can be represented by the diagram shown in Figure. In Figure, if the N-Ty

Expertsmind.com  brings you unique solution in Electrical Engineering   How does OR gate work? An 'OR' gate is like two or more switches positioned in parallel.


In spot welding, the parts to be joined are normally over lapped. The work piece are clamped between two water cooled copper electrodes. On the passage of a high transient current,

Cash Flow Diagrams We will use a cash flow approach to analyze the flow of money through out a planning horizon. A cash flow occurs when money actually change hands. We will u