If cash flows are evenly distributed and the tax rate is 40

Assignment Help Finance Basics
Reference no: EM13479457

Blake Corporation's new project calls for an investment of $10,000. It has an estimated life of 10 years. The IRR has been calculated to be 15%. If cash flows are evenly distributed and the tax rate is 40%, what is the annual BEFORE-TAX cash flow each year? (Assume depreciation is a negligible amount.)

Reference no: EM13479457

Questions Cloud

When examining financial statements a note that describes : topic 1 contingencieswhen examining financial statements a note that describes contingencies should be reviewed closely
The asset will be depreciated on a straight line basis to : blain corporation is considering the purchase of a machine which has an expected 8 year life and costs 20000. the
Explain the differencies and comparison between fitch : question 1 explain the differencies and comparison between fitch moody standard amp poors in assessing the credit
How much will the additional cash revenue during the 10 : g mart inc. is considering the acquisition of equipment to expand its sales. the initial cost of the equipment is
If cash flows are evenly distributed and the tax rate is 40 : blake corporations new project calls for an investment of 10000. it has an estimated life of 10 years. the irr has
Kuanysh company is considering purchasing a large retail : kuanysh company is considering purchasing a large retail location. the retail site includes a large parking lot loading
The firm uses a 12 percent cost of capital to evaluate : the smith company is considering two mutually exclusive investments that would increase its capacity to make
What are the future value of 10000 with and interest rate : what are the future value of 10000 with and interest rate of 16 percent and one annual period of compounding? with an
Abc inc an all-equity firm currently has a beta of 125 and : abc inc. an all-equity firm currently has a beta of 1.25 and rf7 and rm14. suppose the firmsells 10 of its assets

Reviews

Write a Review

Finance Basics Questions & Answers

  Computing project''s npv

Computing Project's NPV of Swannee Resorts is considering a new project whose data are shown below

  What is the incremental free cash flow for year one

The company's tax rate is 35% Working captial is expected to increase by $3,000 at the inception of the project but this amount will be recaptured at the end of year five. What is the incremental free cash flow for year one?

  How much cash would be freed-up

Its cost of goods sold is 75% of sales, and it finances working capital with bank loans at an 8% rate. Assume 365 days in year for your calculations. Do not round intermediate steps. Smith's cash conversion cycle (CCC) 84.23 Days.

  Q let the following case on november 1 2013 incoming

q. let the following case. on november 1 2013 incoming federal reserve chaireach son janet yellin states unhappiness to

  Amanagement accounting and control system is part of the

a management accounting and control system is part of the information-generating function internal to a firm. it helps

  Find myr position should be hedged or not

As you are the finance manager of Aussie Biscuits you are worried that the recent significant appreciation of the Australian dollar may continue in the near future and you are considering whether this MYR position should be hedged or not.

  Calculate the cost of purchasing the equipment

If Reynolds borrowed and bought, the bank would charge 12 percent interest on the loan. a. Calculate the cost of purchasing the equipment. b. Calculate the cost of leasing the equipment. c. Calculate the NAL.

  What is the expected selling price of each bond

Your investment banking firm has estimated what your new issue of bonds is likely to sell for under several different economic conditions. What is the expected (average) selling price of each bond?

  Several illustrations have been provided explaining a long

several illustrations have been provided explaining a long position and how it contrasts with a short position. college

  For this project you should consider the role of banking

financial institutions amp marketsproject instructionsfor this project you should consider the role of banking

  What is the company return on equity

Martinez inc has a total debt ratio of .56 total debt if $316,000 and net income of $38,500. What's the company return on equity?

  Explain what a balance sheet is

Explain what a balance sheet is, the information it provides, and how assets and claims on assets are arranged on a balance sheet.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd