Computation of net investment and net operating cash flows

Assignment Help Finance Basics
Reference no: EM1311621

Computation of net investment and net operating cash flows

Syracuse Road building Company is considering the purchase of a new tandem box dump truck. The truck costs$95,000, and an additional$5,000 is needed to paint it with the firm logo and install radio equipment. Assume the truck falls into the MACRS three-year class. The truck will generate no additional revenues, but it will reduce cash operating expenses by$35,000 per year. The truck will be sold for$40,000 after its five-year life. An inventory investment of$4,000 is required during the life of the investment. Syracuse Road building is in the 45% income tax bracket.

a) What is the net investment?

b) What is the after-tax net operating cash flow for each of the five years?

Reference no: EM1311621

Questions Cloud

How many units did seville complete and transfer : Seville Corporation uses the weighted average method to prepare production reports. How many units did Seville complete and transfer?
Computing mean and median : Compute and interpret each of the statistics in parts(a) through (f) Mean and Median.
Sample variance and sample standard deviation : Compute the sample variance and sample standard deviation as a measure of volatility of monthly total return for Chevron (to 2 decimals): Sample variance and Sample standard deviation.
Find the magnitude of the electrostatic force : Dan is gliding on his skateboard at 2.00m/s. He rapidly jumps backward off the skateboard, kicking the skateboard forward at 8.00m/s (as measured by an observer on the ground). Dan's mass is 60.0kg and the skateboard's mass is 7.00kg.
Computation of net investment and net operating cash flows : Computation of net investment and net operating cash flows and what is the after-tax net operating cash flow for each of the five years
Calculating real gdp and price level : Compute the path of the economy, that is , calculate real GDP, the price level, the inflation rate and real money stock for each year until GDP I swithin 1% of the potential. (limit calculated values to 10 decimals points)
Value of the test statistic : Compute the value of the test statistic (to 2 decimals).
How much overhead was incurred for the month : Determine the overhead rate is 25 percent of raw materials used plus 50 percent of direct labor costs and How much overhead was incurred for the month?
Objective questions based on kinematics : Objective questions based on kinematics.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Computation of unrealised gain or loss in market value

Computation of unrealised gain or loss in market value of trading securities and Prepare the required general journal entry for these transactions

  Stock valuation beneath equilibrium situation

Stock valuation beneath equilibrium situation and Assuming the stock market is efficient and the stocks are in equilibrium

  Determining amount of costs acquired by firm

Tax rate was= 36.6%. Determine the amount of costs acquired by firm for last year?

  Computation of default risk premium on the corporate bond

Computation of default risk premium on the corporate bond and market's forecast for given years and what is the market's forecast for 1-year rates 1 year from now

  Savings account for each of five years

You plan to deposit $250 into the savings account for each of five years, beginning 1 year from now. Interest rate is 9% compounded annually. Find out the future value in each of the following cases.

  What is the yield to maturity on the bond

What is the yield to maturity on the bond?

  Computation of unamortised bond premium

Computation of unamortised bond premium, Gain and Loss on bond retirement and Prepare the journal entry to record the retirement of these bonds

  Your success in financial management

After graduating from graduate school you create it big-all because of your success in financial management.

  Dollar amount that winters must debit the vehicles account

Determine the dollar amount that Winters must debit the Vehicles account

  Discuss on performance metrics and conversion rate

Discuss on Performance metrics and Conversion rate and Abandonment rate & Return on investments, Potential ethical issues facing an e-business

  Find the prime rate of interest fluctuates with short-term

find the prime rate of interest fluctuates with short-term loans, rate of interest

  Computation of value or price of bond

Computation of value or price of bond thus it makes no coupon payments over the life of the bond

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!

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