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!
Assignment
Arkwright Mills plc is considering expanding its production of a new yarn, code name X15. The plant is expected to cost £1m and have a life of five years and a nil residual value. It will be bought, paid for and ready for operation on 31 December Year 0. £500,000 has already been spent on development costs of the product; this has been charged in the income statement in the year it was incurred. The following results are projected for the new yarn: Year 1 £m Year 2 £m Year 3 £m Year 4 £m Year 5 £m Sales revenue 1.2 1.4 1.4 1.4 1.4 Costs, including depreciation (1.0) (1.1) (1.1) (1.1) (1.1) Profit before tax 0.2 0.3 0.3 0.3 0.3 Tax is charged at 50 per cent on annual profits (before tax and after depreciation) and paid one year in arrears. Depreciation of the plant has been calculated on a straight-line basis. Additional working capital of £0.6m will be required at the beginning of the project and released at the end of Year 5. You should assume that all cash flows occur at the end of the year in which they arise.
Required:
(a) Prepare a statement showing the incremental cash flows of the project relevant to a decision concerning whether or not to proceed with the construction of the new plant.
(b) Compute the net present value of the project using a 10 per cent discount rate.
(c) Compute the payback period to the nearest year. Explain the meaning of this term.
a. Find the marginal tax rate for the following levels of corporate earnings before taxes: $11,000, $81,600, $304,000, $496,000, $1,300,000, $9/3 million, and $20.4 million
allocation of costs based on abc and profitability of product lines.john and jerry llp perform activities related to
Long-term investment decision
1library research assignment use the comparative analysis below for sampj plumbing inc. to determine if sampj
Calculate the cost of capital for the company, what is the net operating profit after taxes (NOPAT) for 2012 and what is the net operating capital NOWC and total net operating capital (NOC) for each of the years 2011 and 2012
When analyzing a company's performance, what are some of the problems of relying on ratio analysis only and how does sinking fund provision impact the value of a bond?
1.For the following scenario, find the order point (R) needed to provide 95 percent service level:
Cedar sold machine, which cost 225,000$ & had accumulated depreciation of 90,000$, for $105,000. Make a statement of cash flows using the indirect method.
elk county telephone has paid the dividends shown in the following table over the past 6 years.year dividend per
Estimate the amount of depreciation expense reported on Campbell's tax returns for each of the years 11,10, and 9. Use tax return of 34%
select the incremental cash flows from the options.1.nbspwhich of the following cash flows are relevant incremental
What is the value of this firm - according with Modigliani Miller preposition 2 about what is the above calculation imply about the level of debt?
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