Reference no: EM131054662
A project requires $353,268 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?
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What are the operating cash flows
: ABC Inc. has estimated the following revenues and expenses related phase I of a proposed new housing development? Incremental sales= $6,335,814, total cash expenses $3,212,642, depreciation $388,125, taxes 29%, interest expense, $200,000. What are th..
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What is value of the stock if the appropriate discount rate
: Doctors-On-Call, a newly formed medical group, just paid a dividend of $.50. The company's dividend is expected to grow at a 20% rate for the next 5 years and at a 3% rate thereafter. What is the value of the stock if the appropriate discount rate is..
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What is the operating cash flow for year four
: ABC Company has a proposed project that will generate sales of 284 units annually at a selling price of $298 each. The fixed costs are $6,914 and the variable costs per unit are $117. The project requires $24,187 of equipment that will be depreciated..
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Fixed assets will be depreciated to zero book value
: A project has an initial requirement of $229,025 for new equipment and $9,004 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $82,095. All o..
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Equipment that is classified as seven-year property
: A project requires $353,268 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.9..
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The market return on similar bonds
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What if rates suddenly fall by two percent instead
: Bond J has a coupon rate of 4 percent and Bond K has a coupon rate of 10 percent. Both bonds have 13 years to maturity, make semiannual payments, and have a YTM of 7 percent. If interest rates suddenly rise by 2 percent, what is the percentage price ..
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What are the net operating cash flows in years
: The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R&D department. The equipment's basic price is $70,000 and it would cost another $15,000 to modify it for special use b..
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The after tax salvage and the return of working capital
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