Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Keystone Canning Company must replace one of its fully depreciated canning machines. Two new models are available. Machine A, having a cost of $100,000 an expected life of 3 years and before tax cash flow savings of $55,000 per year and Machine B, having a cost of $200,000, an expected life of 5years, and before tax cash flow savings of $80,000 per year. Machine A fall into the MACRS 3 -year class, while Machine B fall inti the MACRS 5-year class. Both machines will have an expected salvage value equal to their book value at the end of their expected lives. Technological improvements are expected so that any machined purchased after 3 years will provide after tax profit plus depreciation cash flow that are 20 percent higher than present cash flows. However, machinery prices in 3 years are projected to rise 2o percent, offsetting the increased cash flows, after that time, keystone projects that machinery prices and cash flows will be constant. The firm's cost of capital is 15% and its federal plus state tax rate is 40%. If the replacement is to be made, it must be done now. should Keystone replace the old machine with one of the new models? if so, with which alternatives?
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,080,000 and will be sold for $1,280,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax s..
Fama’s Llamas has a WACC of 10.4 percent. The company’s cost of equity is 13.4 percent, and its cost of debt is 8.8 percent. The tax rate is 38 percent. Required: What is Fama’s target debt-equity ratio?
You are considering the purchase of new car. You have negotiated with the salesperson at the dealership and you can purchase the vehicle for $30,000. You have $8,000 that you can use as a down payment. Can you meet your payment restriction and financ..
Lincoln Industries' current ratio is 0.5. Considered alone, which of the following actions would increase the company's current ratio?
Tanghshan Mining has 100,000 shares outstanding and just declared a 3 for 2 stock split. Before the announcement, the firm's shares were trading at $50.00 per share. After the stock divided, the firm's shares should trade at ________ per share.
Why should European MNCs consider hedging their future remittances from Indonesia to their parent even when the forward discount on the currency (rupiah) is so large?
After a 5-for-1 stock split, Strasburg Company paid a dividend of $.75 per new share, which represents a 9% increase over last year's pre-split dividend. What was last year's dividend per share?
Which of the following is not part of the underwriting process?
bull write a brief company history including a mission statement if available.section iibull thoroughly explain at
The most pessimistic estimate represents a value that the project's NPV is not expected to fall below more than 10 percent of the time. What is the probability that this project will have a negative NPV?
Identify the key risks in the project and how they might be mitigated - Apply capital budgeting knowledge and entry level skills to a real decision made by a real company.
You can buy a $50 savings bond today for $25 and redeem the bond in 10 years for its full face value of $50. You could also put your money in a money market account that pays 7% interest per year. Which option is better, assuming they are of equal ri..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd