Determine the projects cash flow in each year

Assignment Help Financial Management

Reference no: EM131014856

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $625,000. This cost will be depreciated straight line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $95,000. Sales minus costs will be $183,000 per year, and the system requires an initial investment in net working capital of $41,000. If the tax rate is 34 percent, determine the project’s cash flow in each year.

Reference no: EM131014856

Questions Cloud

Govern the process of incorporation : Bryant Gunderson is a sole proprietor with a successful bungee-jumping business. He is considering incorporating his business. What levels and sources of law would affect and govern the process of incorporation?

The interest rate remained : Suppose that five years ago Cisco Systems sold a 15-year bond issue that had a $1,000 par value and a 7 percent coupon rate. Interest is paid semiannually. a. If the going interest rate has risen to 10 percent, at what price would the bonds be sellin..

Determine the magnitudes of the student velocity : The student starts from rest at the caller and runs away with a constant radial acceleration 0.5 m/s2 (with respect to the platform) as shown. The platform rotates at constant angular velocity 0.2 rad/s. Determine the magnitudes of the student's ve..

Calculate the saturation pressure of n-pentane : Calculate the saturation pressure of n-pentane at 90°C by applying the "equal area" rule to the Redlich-Kwong equation.

Determine the projects cash flow in each year : Kolby’s Korndogs is looking at a new sausage system with an installed cost of $625,000. This cost will be depreciated straight line to zero over the project’s five-year life, at the end of which the sausage system can be scrapped for $95,000. Sales m..

Find the rate of change of the radius of the circle : The rate of change of Area, A, of a circle is 32 π in2/min when the radius is 2 in. Find the rate of change of the radius of the circle ( i.e., dr/dt) when the radius is 2 in.

About the retirement plan : After graduating from college, you are hired by a company that offers a 401(k) retirement plan. You would like to save enough in this plan so that when you retire in 35 years you have an account balance of $1 million. You plan to make monthly contrib..

What is the largest total area that can be enclosed : What should be the length of the side running parallel to the river? What is the largest total area that can be enclosed?

Average amount mall customers : After you have applied the descriptive data measures, you find the mean to be particularly telling. You believe that you can happily tell the food court owners that the average amount mall customers spend on food during a visit has increased. You ..

User Account

All Pages