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
Suppose an advertising agency is conducting a survey concerning the effectiveness of commercials during the Super Bowl. If 32% of people watch the Super Bowl, and if the agency con

Compared with the situation before 1981, the marginal tax rates imposed on individuals and families with high incomes are now lower. What was the top marginal personal income tax r

what is the formula for calculating investment multiplier for 4 sector economy?

Q. What do you mean by Wage inflation? We will develop the Keynesian model removing the assumption of fixed nominal wages. We state wage inflation p w as the percentage averag

Let us now see a bit more closely how monetary policy works. See Figure Figure  The initial equilibrium at point E is on the initial LM schedule that corresponds to a

Q. Determine the Exchange rate? Exchange rate is determined by the ratio of domestic price level to the foreign price level. If, for instance domestic prices increase by 10% wh

Is the natural rate of unemployment fixed? Why or why not? How are full employment and the natural rate of unemployment related? Is the actual rate of unemployment currently greate

An investment promised a payoff of $195 two and a half years from today. At a discount rate of 75% per year what is the present value of this investment? A. 169.47 B. Not enoug

1.    Which function of money is disrupted as a result of high inflation? Why? 2.    The central bank of Fiji has issued $1,000,000 in Fijian dollars. What is the size of m

In a group environment, should leaders be assigned at the beginning of a project or should leaders emerge as the group is working on the project? Outline the positives and negative