Determine the net terminal year cash flow, Macroeconomics

A company is assessing a proposed 4-year project.  The depreciable cost will involve the following: $300,000 for the equipment, $20,000 for shipping, and $30,000 for installation. The depreciation life is under the MACRS 3-year class, along with a salvage value of $45,000. The inventories will rise through $18,000 and accounts payable will rise through $3,000. In addition, the new sales are predictable to be 150,000 units per year at $2.25 per unit. There is a variable operating cost which is 60% of sales and the company's marginal tax rate is 35%.  Complete parts (a) through (c) below.

a)  Determine the net operating cash flow for the initial year (Year 0).

b)  Determine the net operating cash flow for Years 1, 2, and 3.

c)  Determine the net terminal year cash flow.

 

 

Posted Date: 4/1/2013 5:38:55 AM | Location : United States







Related Discussions:- Determine the net terminal year cash flow, Assignment Help, Ask Question on Determine the net terminal year cash flow, Get Answer, Expert's Help, Determine the net terminal year cash flow Discussions

Write discussion on Determine the net terminal year cash flow
Your posts are moderated
Related Questions
Q. Central bank overnight interest rate? Overnight interest rate is a significant interest rate for a central bank and it has methods of influencing this rate. In most nations,

critically examine the keynesian theory of unemployment

As previously stated, the aim of the paper is to observe and analyse the effects of oil price shocks on key macroeconomic indicators in the UK economy. From this the aim is to conc

circular flow of national income?

Differentiate between Actual and Potential output.  Actual output is that level which economy in fact produces. In contrast, potential output is the aggregate capacity output o

Determine the principle of equity The principle of equity is that a tax must be fair and the tax is levied on those with the ability to pay tax. The principle of efficiency

A nursing home contracts with an HMO for skilled nursing care at $2.00 PMPM. If costs are expected to average $120 per day, what is the maximum utilization of days per 1,000 member


how to relate macro economics theories with current indian economy

real gdp measures?