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!
The managers of Magma International, Inc plan to manufacture engine blocks for classic cars from the 1960s era. The expect to sell 250 blocks annually for the next five years. The necessary foundry and machining equipment will cost a total of $800,000 and belongs in a 30% CCA class for tax purposes. The firm expects to be able to dispose of the manufacturing equipment for $150,000 at the end of the project. Labour and materials costs total $500 per engine block, fixed costs are $125,000 per year. Assume a 35% tax rate and a 12% discount rate.a.) What is the depreciation tax shield in the third year for this project?
b.) What is the present value of the CCA tax shield?
c.) What is the minimum bid price the firm should set as a sale price for the blocks if the firm were in a bidding situation?
d.) Assume that management believes that auto restores will pay $3,000 retail per engine block. What is the NPV of this project?
tod lohman has filed a lawsuit against the party alleged to be at fault in an accident resulting in his total
you are evaluating a project for the ultimate recreational tennis racket guaranteed to correct that wimpy backhand. you
Last year the price for thermometer covers in a pediatrician's office was $.05 each. This year, the covers cost $.06 each. If the office purchased 10,000 thermometer covers this year, what is the price variance?
dinero bank offers you a 30000 seven-year term loan at 8 percent annual interest. what will your annual loan payment
many investors view non influential stock investments stock purchased to earn return versus stock purchased to gain
the president of the company would like you to figure the cost of equity for your corporation. the t-bill rate is 1.45
The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 65%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.
Assume that a company has $10 million in assets (where the market value of the assets is equal to the book value of the assets) and no debt. The company's marginal tax rate is 35% and has 500,000 shares outstanding. The company's earnings before inte..
what is the relation between the present value factor and the future value
A company generated free cash flow of 2348 million and paid net interest of 23 million after tax. it paid a dividend of 14$ million and issued shares for 54 million.
Is the DCF approach or the market multiple approach best for valuing a business? Are there conditions when one approach is preferred over the other?
What is the annual equivalent value of a geometrically increasing series of payments which has first-year base of $30,000 increasing by 8% per year for 10 years with an interest rate of 12% compounded monthly?
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