What are the cash flows in years 1 2 and 3

Assignment Help Finance Basics
Reference no: EM131140649

A project has a cost of $180. It will have a life of 3 years. The cost will be depreciated straight-line to a zero salvage value, and will be worth $40 at that time. Cash sales will be $200 per year and cash costs will run $110 per year. The firm will also need to invest $70 in net working capital at year 0. The appropriate discount rate is 8% (use for all flows), and the corporate tax rate is 40%. What are the cash flows in years 1, 2, and 3?

Reference no: EM131140649

Questions Cloud

Produce a hypothetical set of performance specifications : Produce a hypothetical set of performance specifications for such a signaling device.
What most likely went wrong in the training : What most likely went wrong in this training? How could future training be improved, including the explanation of chemical hazards without specifically addressing each chemical?
Describe the impact federal legislation : Describe the impact federal legislation has had on the prevalence of rehabilitation engineers and the market for their work in assistive technology. Explain and provide examples.
Discuss the validity of each claim : Arnold died some time later, and the deed and will were found in his safe. Burton, Connie, and Ernest claim the farm, and Donna claims dower.- Discuss the validity of each claim.
What are the cash flows in years 1 2 and 3 : Cash sales will be $200 per year and cash costs will run $110 per year. The firm will also need to invest $70 in net working capital at year 0. The appropriate discount rate is 8% (use for all flows), and the corporate tax rate is 40%. What are the c..
Describe the electronic data processing steps needed : How have the technological advances in personal computing made this conversion faster and the speech output more lifelike?
Prepare discovery documents on behalf of mrs hatter : Prepare each of the following discovery documents on behalf of Mrs. Hatter - Request for Answers to Interrogatories.
Would you recommend to the machine shop manager : Which control measure(s) would you recommend to the machine shop manager? Your response must be at least 200 words in length. Engineering controls Warnings Administration controls Personal protection equipment.
Calculate the portfolio expected return : A portfolio exists containing stocks A, B, and C held in proportions 50%, 30%, and 20% respectively. The expected returns on the three stocks are given by 10%, 15%, and 16% respectively. Calculate the portfolio's expected return.

Reviews

Write a Review

Finance Basics Questions & Answers

  Set up the accompanying proclamations

Set up the accompanying proclamations, expecting that the outer trusts prerequisite would be raised just as from term credits and shortterm bank borrowings:anticipated monetary record

  How much should be paid for mortgage instruments

The company just paid dividends of $1. This growth rate% is expected to continue. How much should be paid for Mortgage Instruments stocks just after this year's dividend of theappropriate required rate is 5%.

  Calculate depreciation expense for year 3

A firm plans to purchase equipment for $1.5 million. It will cost 200,000 to modify it for use in the firm's facility. The equipment is in the 3-year MACRS class. Calculate depreciation expense for Year 3.

  Effect on the level and slope of the yield curve immediately

Suppose a new and much more liberal Congress and administration were elected, and their first order of business was to take away the independence of the Federal Reserve System, and to force the Fed to greatly expand the money supply. What effect woul..

  Gather three years worth of financial statements for your

gather three years worth of financial statements for your firm.nbsp include the balance sheet income statement and cash

  Now assume rrf remains at 9 but rm 1 increases to 16 or 2

suppose rrf9 rm14 and bi1.3required rate of return is 15.5now assume rrf remains at 9 but rm 1 increases to 16 or 2

  Goodwood golfings earnings available for common

1. bond interest payments before and after taxes.zylex corp has issued 2500 bonds with a total principal value of

  Income statement

I need to figure out the statement of retained earnings. I have earnings end of year, 12,979 revenues 25,329, net interest expense, 453 income taxes 853 other income net 137 dividends paid.

  Bonds issued by the tyler food corporation have a par value

bonds issued by the tyler food corporation have a par value of 1000 are selling for 1270 and have 20 years remaining to

  What is your effective annual interest rate an opportunity

a bank offers your firm a revolving credit arrangement for up to 61 million at an interest rate of 1.48 percent per

  What rate of return should investors expect on this fund

The required rate of return on the market is 10.00% and the risk-free rate is 4.00%. What rate of return should investors expect (and require) on thisfund?

  Research on the history of the two companies

Do some research on the history of the two companies (Target and JCPenney) and then write a paper that tells me what you have learned.

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