User Account

All Pages

What is the project total nominal cash flow

Assignment Help Finance Basics
Reference no: EM13686144

Price, Inc., is considering an investment of $366,000 in an asset with an economic life of 5 years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $246,000 and $71,000, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 2 percent. Price will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $46,000 in nominal terms at that time. The one-time net working capital investment of $10,500 is required immediately and will be recovered at the end of the project. All corporate cash flows are subject to a 35 percent tax rate.

What is the project's total nominal cash flow from assets for each year?

Reference no: EM13686144

Questions Cloud

What is your estimate of cost of equity capital for amgel : What is your estimate of the cost of equity capital for Amgel (based on the CAPM)?
Performance management system : Describe how an organizational culture and the use of performance criteria and standards impact, positively and negatively, a performance management system.
University in maryland works on a new lms system : A well known university in Maryland works on a new LMS system, The management anticipates that new system will have the first year revenues of $400,000 with subsequent annual growth of 5%. Operating costs are 30% of revenues.
States a central element of the economic way of thinking : Which of the following states a central element of the economic way of thinking? Scarce goods are priceless. The realism of the assumptions is the best test of an economic theory.
What is the project total nominal cash flow : What is the project total nominal cash flow from assets for each year?
Explain the defficiencies of traditional demand theory : Explain the defficiencies of traditional demand theory.
Outstanding bonds : Rockne, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,001.73 today and your required rate of return was 7.30 percent.
What is the next-lowest positive frequency : What is the lowest positive frequency at which the CTFT could be non-zero and what is the next-lowest positive frequency at which the CTFT could be non-zero?
What is the market value of the bond : Knight, Inc., has issued a three-year bond that pays a coupon of 5.50 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.10 percent, what is the market value of the bond?

Reviews

Write a Review

Finance Basics Questions & Answers

  What price change would lead to a margin call under what

an investor enters into two long july futures contracts on orange juice. each contract is for the delivery of 15 000

  How would the accounting be affected if the original costs

1 a gunsmith company has an inventory of 100000 ounces of gold originally purchased for 4.00 per ounce. on september 30

  These financial statement items are for whitnall

these financial statement items are for whitnall corporation at year-end july 31 2012.salaries and wages

  A firm is planning on paying its first dividend of 2 three

a firm is planning on paying its first dividend of 2 three years from today. after that dividends are expected to grow

  What is the shareholders equity

Culligan, Inc., has current assets of $26,293, net fixed assets of $128,720, current liabilities of $17,380, and long-term debt of $52,242.

  You purchases a zero coupon bond one yr ago for 28083 the

you purchases a zero coupon bond one yr ago for 280.83. the market interest rate is now 9 percent. if the bond had 15

  What would the annual increase in value on the certificate

Suppose that in 2010, a $10 silver certificate from 1898 sold for $11,200. For this to have been true, what would the annual increase in value on the certificate have been?

  Does the market adjust for risknbsp hownbsp is the

does the market adjust for risk?nbsp how?nbsp is the adjustment timely enough?some people say the pe ratio may not be a

  Determine the amount of post-retirement expenses

The following information is related to the Hedge Corporation post-retirement benefits plan for 2011. Determine the amount of post-retirement expenses for 2011.

  Restating for foreign inflation

Aztec Corporation, a U.S. subsidiary in Mexico City begins and ends its calendar year with an inventory balance of P500 million. The dollar/peso exchange rate on January 1 was $.02=P1.

  Which of the 4 change projects should the consulting group

this week when you meet with your consulting partners you want to evaluate the following issueshow much longer should

  What is the bonds yield to maturity

Assume there is a 12- year, 9.5% semiannual coupon bond, with a par value of $1000. The bond sellsy for $1,152. A. What is the bond's yield to maturity. B. What is the bond's current yield?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd