Discuss the problem related to new equipment

Assignment Help Finance Basics

Reference no: EM132059664

Question: A project has an initial requirement of $235,771 for new equipment and $10,621 for net working capital. The installation costs are expected to be $15,302. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $144,149. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $69,607 and the cost of capital is 5% What is the project's NPV if the tax rate is 35%?

Reference no: EM132059664

Questions Cloud

Determining the profitability index in given case : A project has an initial outlay of $4,949. It has a single payoff at the end of year 3 of $8,124. What is the profitability index (PI) of the project.

Calculate the olb-end for each month : You work for an nationally charter bank and have been asked to project adjustable rate mortgage (ARM) payments over the life of a loan.

Calculate the equivalent units produced for each materials : For the month of January, calculate the equivalent units produced for each of the two cost categories direct materials and labor and overhead

Measure the radioactivity of a mineral sample : You measure the radioactivity of a mineral sample. You repeat the measurement 100 days later and find only 52 percent of the radioactivity remains.

Discuss the problem related to new equipment : A project has an initial requirement of $235,771 for new equipment and $10,621 for net working capital. The installation costs are expected to be $15,302.

Sketch a fully labeled figure showing the sections : Sketch a fully labeled figure showing the sections x = -1, 0, 1 for the surface z = f (x, y). Show any work necessary to arrive at the information sketched.

Write a sample message for each medium : You think it would be a great idea to run daily specials and advertise them on Twitter, Facebook, and e-mail.

Intermediate value theorem and rolle theorem : Use the Intermediate Value Theorem and Rolle's Theorem to show that the equation has exactly one solution: x^3 + e^x = 0

What is the present value of the new drug : What is the present value of the new drug if the interest rate is 11% per year? The present value of the new drug is $ million.

User Account

All Pages