finance help
Question # 00100840
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Updated on: 09/04/2015 06:30 PM Due on: 09/05/2015
| 1. A project has an initial requirement of $199,615 for new equipment and $9,833 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $136,094. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $99,835 and the cost of capital is 5% What is the project's NPV if the tax rate is 27%? 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. |
| 2. | A project has an annual operating cash flow of $15,714. Initially, this 4-year project required $4,653 in net working capital, which is recoverable when the project ends. The firm also spent $10,000 on equipment to start the project. This equipment will have a book value of $2,936 at the end of year 4. What is the total cash flow for year 4 of the project if the equipment can be sold for $6,121 and the tax rate is 29%? 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. |
| 3. ABC Corporation is considering an expansion project. The necessary equipment could be purchased for $28,738 and shipping and installation costs are another $826. The project will also require an initial $7,571 investment in net working capital. The company's tax rate is 40%. What is the project's initial investment outlay? 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. ABC Corporation is considering an expansion project. The necessary equipment could be purchased for $28,738 and shipping and installation costs are another $826. The project will also require an initial $7,571 investment in net working capital. The company's tax rate is 40%. What is the project's initial investment outlay? 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 |
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