What is the project npv if the tax rate

Assignment Help Finance Basics
Reference no: EM132367017

A project has an initial requirement of $210,944 for new equipment and $9,567 for net working capital. The installation costs to get the new equipment in working condition are 8,125. The fixed assets will be depreciated to a zero book value over the 5-year life of the project and have an estimated salvage value of $100,516. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $95,257 and the cost of capital is 16% What is the project's NPV if the tax rate is 39%?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Reference no: EM132367017

Questions Cloud

Cost of unlevered equity for such a solar heater : The interest rate on the debt is 8%. Is the project worthwhile? Use APV method.
Investment in net working capital : The corporate tax rate is 34%, and the risk-free rate is 4%. The project will require a $100,000 investment in net working capital. Calculate the APV.
What is the operating cash flow : ABC Company has a proposed project that will generate sales of 444 units annually at a selling price of $291 each. The fixed costs are $6,542
Computing the project npv : The annual operating cash flow is $85,279 and the cost of capital is 5% What is the project's NPV if the tax rate is 26%?
What is the project npv if the tax rate : The annual operating cash flow is $95,257 and the cost of capital is 16% What is the project's NPV if the tax rate is 39%?
Acceptance of an offer under contract law : Explain the Uniform Commercial Codes' position on acceptance of an offer under Contract Law.
What will the outcome most likely be : John sues Imports Inc. What will the outcome most likely be?
How many choppers would you have to sell to break even : A. Accounting breakeven: How many choppers would you have to sell to break even, ignoring the costs of financing?
Could there be a benefit to doing this : Could there be a benefit to doing this? Defend your argument with related literature to support your case.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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