Find the net cash flow, Find the net cash flow for t = 0.

Find the net cash flow

Reference no: EM13789702

Company is planning to buy a machinery at a cost of $20 million. This machine will be used for 10 years. The machine will bring additional revenue as follows:

$10 million for first 6 years and $7 million for the last 4 years

Expenses = 60% of revenue for all 10 years

After 10 years the machine will be sold for an estimated price of $2 million and the estimated selling expense is $400,000.

Tax rate = 20%

A. Find the net cash flow for t = 0

B. Find the after tax cash flow for each year from year 1 to year 10.

Reference no: EM13789702

Questions Cloud

Produce sales reports for management : Consider a system that is used to run a small clothing store. Its main functionality is; maintaining inventory of stock, selling items to customers, producing sales reports for management.

Use of hmis in any healthcare services organization : The role of the CEO or CIO to oversee the use of HMIS in any healthcare services organization requires that the individual has been trained and has experience and mastered a certain set of

Explain the role of characters secrets in the novel : One of the themes in the novel involves secrets. Pick two characters and explain the role of their secrets in the novel.

Instruction on ethical decision-making paper : Ethical Decision-Making

Find the net cash flow : Find the net cash flow for t = 0. Find the after tax cash flow for each year from year 1 to year 10.

Abiotic components and biotic components for the ecosystem : Describe the damage to the ecosystem for each example, including how the abiotic and biotic characteristics of the ecosystem changed.

Strategy-executing approaches : While companies must tailor their strategy-executing approaches to their particular situation, there are eight managerial tasks which are common elements in executing strategies.

What would be the equal annual payments : What would be the equal annual payments - If the current market internal rate on similar mortgages is 12%, how much money does the bank lose by issuing the mortgage described in (a)?

Identify the organisational change problem and challenges : To provide an analysis of the factors that are contributing to the organisational change problem and a preliminary diagnosis to identify the organisational change problem and challenges.

User Account

All Pages