Sway's market is considering a project that will require the purchase of $1.4 million in new equipment. the equipment will be depreciated straight-line to zero over the 5-year life of the project. the firm expects to sell the equipment at the end of the project for 20 percent of its original cost. new net working capital equal to 10 percent of sales will be required to support the project. all of the new net working capital will be recouped at the end of the project. annual sales are estimated at $750,000 with costs of $338,000. the required rate of return is 12 percent and the tax rate is 34 percent. what is the value of the depreciation tax shield in year 2 of the project?

Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold. if the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the operating cycle be?

Complete the sentences. upper a decrease in current income taxes the supply of loanable funds today because it a. decreases; increases disposable income, which decreases saving b. has no effect on; doesn't change expected future disposable income c. decreases; decreases expected future disposable income d. increases; increases disposable income, which encourages greater saving upper a decrease in expected future income a. increases the supply of loanable funds today because households with smaller expected future income will save more today b. has no effect on the supply of loanable funds c. decreases the supply of loanable funds because it decreases wealth d. decreases the supply of loanable funds today because households with smaller expected future income will save less today

Winners of the georgia lotto drawing are given the choice of receiving the winning amount divided equally over 2121 years or as a lump-sum cash option amount. the cash option amount is determined by discounting the annual winning payment at 88% over 2121 years. this week the lottery is worth $1616 million to a single winner. what would the cash option payout be?