Clemson software, Financial Management

Clemson Software is considering a latest project whose data are given below.  The needed equipment has a 3-year tax life, after which it will be worthless,and it will be depreciated by the straight-line method over 3 years.  Revenues and other operating costs are accepted to be constant over the project's 3-year life.  What is the project's Year 1 cash flow?

Equipment cost (depreciable basis)         $65,000

Straight-line depreciation rate                 33.333%

Sales revenues, each year                      $60,000

Operating costs (excl. deprec.)                $25,000

Tax rate                                               35.0%

 

 

Posted Date: 3/26/2013 7:57:13 AM | Location : United States







Related Discussions:- Clemson software, Assignment Help, Ask Question on Clemson software, Get Answer, Expert's Help, Clemson software Discussions

Write discussion on Clemson software
Your posts are moderated
Related Questions
Question 1: (i) How are education and economic growth connected? (ii) Explain how the export promotion trade strategy may be more growth promoting for developing economies,

The wide gap between maturities poses problems in using the on-the-run issues, especially after five years. Some dealers and vendors use selected off-the-run Trea

Swing Traders Swing trading is more or less similar to day trading except that swing traders will normally have a longer holding period during a working day. Swing traders also

Valuation and Exit Valuation: The Net Asset Value is used as a base for ascertaining the prices applicable to investor subscriptions and redemptions. Fund administrator perform

Basics of  Callable Bonds A callable bond is a convertible bond with the favorable feature of call option available to the issuer. When the fir

Based on the period involved in repayment of the debt obligations, the debt instruments could be classified into long-/medium-/short-term debt instruments.

The United States of America issues US Treasuries, which are negotiable government debt obligations. They are popular because they are backed by the full

What is the Credit Policy? Describe please.

These types of securities have more than one coupon rate and each subsequent coupon rate is higher (or lower) than the previous coupon rate. For

Z works for HS Company and has been asked to undertake an assessment of any health and safety issues that might be potential hazards in the department which she manages. Z's respon