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!
"Since East Coast Yachts is producing at full capacity, Larissa has decided to have Dan examine the feasibility of a new manufacturing plant. This expansion would represent a major capital outlay for the company. A preliminary analysis of the project has been conducted at a cost of $1.2million. This analysis determined that the new plant will require an immediate outlay of $40million and an additional outlay of $20milllion in one year. The company has received a special tax dispensation that will allow the building and equipment to be depreciated on a 20-year MACRS schedule. Because of the time necessary to build the new plant, no sales will be possible for the next year. Two years from now, the company will have partial-year sales of $10million. Sales in the following four years will be $26million, $33million, $38million, and $40million. Because the new plant will be more efficient than East Coast Yachts's current manufacturing facilities, variable costs are expected to be 60 percent of sales, and fixed costs will be $2million per year. The new plant will also require net working capital amounting to 8 percent of sales. Dan realizes that sales from the new plant will continue into the indefinite future. Because of this, he believes the cash flow after Year 5 will continue to grow at 4 percent indefinitely. The company's tax rate is 40 percent and the required return is 11 percent. Larissa would like Dan to analyze the financial viability of the new plant and calculate the profitability index, NPV, and IRR. Also, Larissa has instructed Dan to disregard the value of the land that the new plant will require. East Coast Yachts already owns it, and, as a practical matter, it will simply go unused indefinitely. She has asked Dan to discuss this issue in his report.
What is a deferred tax liability and why might one be created?
nugent communication corp. is investing 10800655 in new technologies. the company expects significant benefits in the
Determine whether the information that is given is consistent
Yoma Corporation is attempting to raise $5,000,000 in new equity with a rights offering. The subscription price for the 125,000 new shares will be $40 each share.
One year from today you must make a payment of $13,000. To prepare for this payment, you plan to make 2 equal quarterly deposits, at the end of Quarters 1 and 2, in a bank that pays 7% nominal interest, compounded quarterly. How large must each of..
A corporate bond matures in 10 years and sells for $940.15. It has a coupon rate of 3.15 percent and a yield of 5.67 percent. What is unusual about the bond?
what expectation would lead a rish neutral investor to buy the 2 note (instead of the 1 year) given its lower yield? (please involve a specific number)
Briefly discuss Present Value and CAPM to your professional discipline.
why is it important to improve the quality of accounting
Calculate the depreciation expense. (Do not round intermediate calculations and round your final answer to nearest whole dollar amount.)
preferred stock valuation the preferred stock of axim corp. is currently selling at 47.13. if the required rate of
What is the annual lease payment? Provide the journal entry for 12/31/13 for Romeo.
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