cash flows, Other Engineering

Assignment Help:
Your company is considering a machine that will cost $6,287 at Time 0 and which can be sold after 3 years for $790. To operate the machine, $886 must be invested at Time 0 in inventories; these funds will be recovered when the machine is retired at the end of Year 3. The machine will produce sales revenues of $853/year for 3 years; variable operating costs (excluding depreciation) will be 50 percent of sales. Operating cash inflows will begin 1 year from today (at Time 1). The machine is in the 3-year MACRS class. The MACRS class has depreciation of 33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4. The company has a 42 percent tax rate, enough taxable income from other assets to enable it to get a tax refund from this project if the project''s income is negative, and a 10 percent cost of capital. Inflation is zero. What are the total cash flows in year 2?

Related Discussions:- cash flows

Dynamic model of pitching motion , It is instructive to investigate the pit...

It is instructive to investigate the pitching motion caused by a disturbance from trim due to a control surface deflection. We shall assume that the velocity remains constant, and

Ts diagram, how to find points on Ts diagram?

how to find points on Ts diagram?

Laws of motion, Expertsmind.com brings you unique solution in electrical ...

Expertsmind.com brings you unique solution in electrical engineering -          Laws of Motion -          Speed is how much distance will be covered in a certain time.

TANGENT GALVANOMETER, WHY THE NEEDLE OF TANGENT GALVANOMETER DEFLECT WITH I...

WHY THE NEEDLE OF TANGENT GALVANOMETER DEFLECT WITH INCREASING OR DECREASING CURRENT?

Range - Aircraft performance, Safe Operating Range The SOR is the max ...

Safe Operating Range The SOR is the max distance between airfields which the aircraft can fly with full allowance for headwind, diversion, stacking. • Distance flown in climb

Propeller control, Propeller Control: There is no separate propeller co...

Propeller Control: There is no separate propeller control selector for this engine / propeller combination. Instead of a separate propeller control lever, the governor is desi

Railway inspections - fire safety management, Railway Inspections - fire sa...

Railway Inspections - fire safety management: Railway premises can be anything from small open air stations to large underground complexes and the fire safety measures that ar

Nuclear physics, Ask queelectron - proton hypothesis

Ask queelectron - proton hypothesis

Rayleigh scattering, how rayleigh scattering occurs in optical fiber cable

how rayleigh scattering occurs in optical fiber cable

Write Your Message!

Captcha
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