Initial cash flow and year cash flow

Assignment Help Finance Basics
Reference no: EM13742646

Lion lighting, Inc. is considering a new light bulb manufacturing machine that would cost $100,000 to buy and an additional $5000 to install. Lion lighting would have to maintain a parts inventory as net working capital during the life of the machine that would be sold at the end of the machine's life. The machine would be depreciated to $15000 over its 3-year life and then sold for $45000. The machine is expected to save $35000, $45000 and $55000 in year 1,2and 3, respectively. If lion lighting has a 30% marginal tax rate, what are the initial cash flow and each year's cash flow from the project?

Reference no: EM13742646

Questions Cloud

Write a synopsis of material found on united nations site : You must write a brief synopsis of the material found on United Nations site. Each synopsis must include the full citation of the website using MLA standards for bibliographies.
Prepare case study on organizational behavior management : Prepare case study on Organizational Behavior Management
Find the payment : Can you please show me how to do this in ms Excel. Find the payment you would need to make per year at a discount rate (interest rate that the bank charges you) from 0% to 50% (51 answers), if you borrow $5,000,000 ($5 million) today (PV) and pay ..
Do you agree with robert hughes critique : You have learned about Robert Hughes' concerns regarding the skyrocketing prices of art. Do you agree with his critique? What are some other consequences of such astronomical pricing?
Initial cash flow and year cash flow : If lion lighting has a 30% marginal tax rate, what are the initial cash flow and each year's cash flow from the project?
How structure relates to function in dna or in rna : Please provide an example of how structure relates to function in DNA or in RNA. There are many possibilities there and Describe operons and their contribution to homeostasis. Or, describe another way genes are regulated
What are franchise agreements : Summarize the following acts: sections 1 and 2 of the Sherman Act; the Clayton Act and the relationship to mergers; and the Robinson-Patman Act on price discrimination. What are franchise agreements?
Explain environment on the persons psychological development : Distinguish between the influences of heredity and environment on the person's psychological development. Be sure to specify which area of psychological development.
Market evaluation for an asian : For a product category of your choice, search in news media and on-line data sources to generate a market evaluation for an Asian or Latin American country (your choice again), in the new global financial situation.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the monthly house payment

Calculate the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $267,000 at 10.8 percent for 15 year

  Write 400ndash600 words that respond to the following

write 400ndash600 words that respond to the following questions with your thoughts ideas and comments. this will be the

  What is the percentage price change of these bonds

Bond J is a 4 percent coupon bond. Bond K is a 10 percent coupon bond. Both bonds have 12 years to maturity, make semiannual payments, and have a YTM of 7 percent.

  The coupon rate on the debt is 75 percent what is the

ernst electrical has 9000 shares of stock outstanding and no debt. the new cfo is considering issuing 80000 of debt

  Computation and explain the arbitrage opportunity

Computation and explain the arbitrage opportunity and what would you do as an arbitrager and when would you stop doing it

  Compute the price of security

You have just bought a security which pays $500 every six months. The security lasts for 10-years. Another security of equal risk also has a maturity of 10-years, and pays 10% compounded monthly.

  Estimating price of the stock

EZee Corporation' common stock dividend is expected to grow at 5 percent for the next 2 years and then at 0% indefinitely. If the current dividend is $4 and the required return is 14%,

  There are 100000 shares of stock outstanding which trade at

bwp projects sales of 100000 units next year at an average price of 50 per unit. variable costs are estimated at 40 of

  Future value of annuity exercise

Using the appropriate tabels find out how much will be accumulated in the fund on December 31, 2012 under each of the following situations:

  Assume that default can take place every 6 months

1.consider a 3-yr corporate bond paying a coupon of 7 per year payable semi-annually and has a yield of 5 expressed

  What is the total present value of the cash flows received

using the time value of money to compute the present and future values of single lump sums and annuities use the

  If the bank charges a fee of 225 per day should the

npv and collection time - your firm has an average receipt size of 108. a bank has approached you concerning a lockbox

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