What will cash flows for this project be

Assignment Help Financial Management

Reference no: EM131532460

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $70,000. The truck falls into the MACRS 3-year class, and it will be sold after three years for $20,800. Use of the truck will require an increase in NWC (spare parts inventory) of $2,800. The truck will have no effect on revenues, but it is expected to save the firm $23,600 per year in before-tax operating costs, mainly labor. The firm’s marginal tax rate is 34 percent. What will the cash flows for this project be? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Reference no: EM131532460

Questions Cloud

Evaluate van itallie vs franklin lakes : Evaluate Van Itallie v. Franklin Lakes. Based on facts described in Van Itallie v. Franklin Lakes take position and explain what you would have done differently

Determine the system function of the overall cascade system : The diagram in Fig. depicts a cascade connection of two linear time-invariant systems; i.e., the output of the first system is the input to the second system.

Accounts receivable and costs : What is the firm’s average accounts receivable balance? what is the average investment in accounts receivable?

How the constitution protects individual and group rights : Discuss how the Constitution protects individual and group rights. Provide an example of checks and balances in action within our government.

What will cash flows for this project be : The firm’s marginal tax rate is 34 percent. What will the cash flows for this project be?

Define judicial activism and judicial restraint : Define judicial review. Define judicial activism and judicial restraint. Provide one recent example of judicial review by the Supreme Court.

Identify and analyze the behavior of the offender : Identify and analyze the behavior of the offender(s) relative to the psychological history and evaluation of the offender(s)

Discuss the definition of the law : Discuss the Following aspects of the foundations of law and the court system: the definition of the law

Discuss the convolution : Show by drawing pictures like Fig. that if x(t) = 0 for t 1 and h(t) = 0 for t 2 then the output y(t) = x(t)* h(t) is zero for 1 + T2.

User Account

All Pages