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
Illustrate about the Effective exchange rate Assume that we are interested in external competitiveness of a country, say Japan. To do this we could look at evolution of a speci

Properties of indifference curve:   Property I: Higher indifference curve gives higher utility.      Explanation: Since all goods are non-satiated, larger consumpti

Assume that Jimmy Cash has $2000 in his checking account and uses his checking card to withdraw $200 from his ATM machine. By what amount did M1 change from this individual transac

Inflation in Germany Once we have monthly data on a price index we can calculate inflation. In most nations, the percentage change in price index during one month is small. So,

Q. Explain about Household savings? Remember that consumption may refer to observed consumption as well as to demand for consumption. The same is true for 'household savings',

Using a flexible exchange rate system with imperfect capital mobility explain the impact that an open economy has on the effectiveness of monetary and fiscal policy. 2. Using a fl


1. Lake Kickapoo, TX, is approximately 12 km in length by 2.5 km in width. The inflow for the month of April is 3.26 m3/s and the outflow is 2.93 m3/s. The total monthly precipitat

The short-run supply of a certain crop is perfectly inelastic, because it has already been harvested and no more of it can be grown until the next growing season. In order to raise

What does a shift in the demand to the right mean? Why does the demand curve shift?