Solution-What is the project equivalent annual cost

What is the project equivalent annual cost

Assignment Help Finance Basics

Reference no: EM132675828

Tristar plans to invest $513,600 by way of machinery in a project to replace its old machinery. The annual operating cash flow of the project is estimated at -$76,540. The fixed asset is fully depreciated over the life of the project and has no salvage value. The project also requires an initial investment in net working capital of $22,200, that will be recovered at the end of the project. The required return is 11.7 percent. If the life of the project is five years, what is the project's equivalent annual cost?

Reference no: EM132675828

Questions Cloud

Calculate Melaleuca Incs net income for this year : Three months' rent received on a leased building on November 1 of this year 9,000. Calculate Melaleuca, Inc.'s, net income for this year

M2H724341 Engineering Design and Analysis Assignment : M2H724341 Engineering Design and Analysis Assignment Help and Solution, Glasgow Caledonian University - Assessment Writing Service

Entry-level security administrator working for always fresh : Assume you are an entry-level security administrator working for Always Fresh. How will the procedures for making changes to the user accounts,

What is the wacc-seahawk incorporated : Seahawk Incorporated is expected to have an EBIT of $2.2 million next year. Depreciation, the increase in net working capital, and capital spending are expected

What is the project equivalent annual cost : The required return is 11.7 percent. If the life of the project is five years, what is the project's equivalent annual cost?

Financial break-even point-summit ltd : Summit Ltd. is exploring to invest in a project to manufacture a blood testing device for retail market. The company has estimated annual fixed costs of $61,200

Conflict within teams and creativity in teams : Evaluate yourself using the three indices of creativity. What strategies can you use to enhance your creativity?

Calculate project npv for company : A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $26,800 per year for five years.

How much is the gain on conversion of the bonds : LKI Company converted its 12%, P1,500,000 face value bonds payable with carrying amount of P1,552,049. How much is the gain on conversion of the bonds

User Account

All Pages

What is the project equivalent annual cost

Reference no: EM132675828

Reference no: EM132675828

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT