What are the incremental free cash flow associated

Assignment Help Finance Basics
Reference no: EM13263775

Daily enterprises is purchasing a 9.8 million machine. It will cost $47,000 to transport and install the machine. This machine has a depriciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of 4.2 million per year along with incremental costs of $1.4 million per year. Daily marginal tax rate is 35%. You are forecasting incremental free cash flows for Daily enterprises. What are the incremental free cash flow associated with the new machine?

Reference no: EM13263775

Questions Cloud

Calculate the energy stored in the inductor at t : R- 1k ohm; L=1nH for the circuit represented in Fig. 8.1, and with the knowledge that i(0) = -3mA: a) Write an expression for i(t) valid for all t>=0 b) Compute i(t) at t=0, t=1ps, 2ps, and 5ps
Determine the object''s average density : A spherical object has an outside diameter of 50.0cm. Its outer shell is composed of aluminum and is 0.800cm thick. Determine the object's average density
Calculate the profitability of the chester company account : Sales $15,000 Number of orders 160 Percent of orders marked rush .70 Calls to technical support 80 Required: Calculate the profitability of the Chester Company account.
Determine the temperature in the middle of the bar : Determine the temperature in the middle of the bar and evaluate it at t = 1, 2, 3, 10, 50 sec. First guess, and then calculate. Also, plot the temperature expression vs. time from t = 1 to 50 sec using Excel
What are the incremental free cash flow associated : Daily marginal tax rate is 35%. You are forecasting incremental free cash flows for Daily enterprises. What are the incremental free cash flow associated with the new machine?
What is the correct initial cash flow for your analysist : Outfitting the space for a coffee shop would require a capital expenditure of $35,000 plus an initial investment of $5,000 in inventory. What is the correct initial cash flow for your analysist of the coffee shop opportunity?
State the other laws of thermodynamics : Describe what the Zeroth Law of Thermodynamics is in your own words. Also, draw a scenario that verifies the Law is accurate. State the other Laws of Thermodynamics
Is there an arbitrage opportunity : Is there an arbitrage opportunity, if so, show the gain on the arbitrage.
Determine what impedance does a driving generator see : A one quarter wavelength piece of 75 ohm microstrip line has a capacity load of Xc = 22 ohms. What impedance does a driving generator see

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculation of npv

Ang Electronics, Inc., has created a new DVDR. If the DVDR is successful, the present value of the payoff [when the product is brought to market] is $21.2 million.

  What is the net present value

What is the net present value (NPV) of this decision if the cost of capital is 9%?

  Star wall street trader is negotiating his 1st contract

A star Wall Street trader is negotiating his 1st contract. His opportunity cost is= 10%. He has been presented the 3 year contracts which are given below.

  Find the appropriate value

The Family Practice Clinic has long-term debt of 567,000 dollar as of December 31, 2009 determine the equivalent value of long-term debt in 2005.

  What is quigley wacc

The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new stock. What is Quigley's WACC?

  Total cost recovery for 2012

Determine her total cost recovery for 2012 with respect to the seven-year class assets and the amount of any § 179 carryforward.

  Rayburn manufacturing-capital structure-repurchase of stock

Rayburn Manufacturing is currently an all-equity firm. The firm's equity is worth $2 million. The cost of that equity is 18 percent. Rayburn pays no taxes.

  Calculate the expected return on the portfolio

Suppose the following information about a five stock portfolio, Calculate the expected return on the portfolio based on a Treasury bill yield of 4 percent and an expected market return of 13%.

  Evaluation of ratios for given financial data''s

Evaluation of ratios for given financial data's and Inventory Turnover and Days' Sales in Inventory

  Computation of exchange rates

Computation of exchange rates and How many euros can you get for $2,500 given the following exchange rates

  Computation of equity capital contribution

Computation of equity capital contribution and Before Tax Cash Flow and After Tax Cash Flow and What is the Before-tax Cash Flow to the equity investor

  How large will your retirement account be in 25 years

You are planning to make monthly deposits of $450 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 25 years?

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