User Account

All Pages

Calculate the free cash flow

Assignment Help Finance Basics
Reference no: EM131537532

You are to evaluate the proposed acquisition of a new machine which can be purchased for 60,000 including shipping, modification and installation costs. The machine falls uno the MACRS three year class life (33,45,15,7) and it will be sold after three years for 20,000. Use of the machine will require an increase in net operating working capital of 2000. The machine is expected to increase revenues by 20,000 per year. The firm's marginal tax rate is 40%

Calculate the free cash flow for year 0

What is the operating cash flow for Year 1?

Operating cash flow for year 2?

Operating cash flow for year 3?

What is the after tax cash flow from the sale of the machine in year 3?

What is the free cash flow for year 3

Calculate the NPV for the project if the required rate of return is 10%

Reference no: EM131537532

Questions Cloud

Develop a data dictionary and an entity relation diagram : Develop a data dictionary and an entity - relation diagram for our proposed statewide degree requirement information service.
How alignment between the values of an organization : Describe how alignment between the values of an organization and the values of the nurse impact nurse engagement and patient outcomes.
Explain potential advantages of membership in organization : Explain Potential advantages of membership in the organization. Create a topic for an upcoming meeting that would appeal to your target audience.
How does the use of technology complicate the dying process : How might a living will be used, or not, to guide an individual's end of life decisions? How does the use of technology complicate the dying process?
Calculate the free cash flow : Calculate the free cash flow for year 0. What is the operating cash flow for Year 1?
Create your own personal enterprise architecture : Create your own personal enterprise architecture. Detail a set of technology tools and applications that comprise your "Personal Enterprise".
Difference between probability and coincidence : What are the difference between probability and coincidence? Can the probability be more that 1 or less than 0? Explain why or why not.
Describe the importance of delivering quality care : Prepare a 15-18-slide PowerPoint presentation describing the importance of delivering quality care on the finances of the organization.
What should the price of the preferred stock be today : What should the price of the preferred stock be today? What should the price of the common stock be today?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd