Business
Business, 12.07.2021 20:20, ha328

The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 35 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Year 0 Year 1 Year 2 Year 3 Year 4 Investment $ 44,000 Sales revenue 22,500 $23,000 $23,500 $20,500 Operating costs 4,700 4,800 4,900 4,100 Depreciation 11,000 11,000 1,000 11,000 Net working capital spending 500 550 600 500 ?a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.)b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.)c. Suppose the appropriate discount rate is 13 percent. What is the NPV of the project? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16))

answer
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 22:30, petunia6548
True or false: banks are required to make electronically deposited funds available on the same day of the deposit
Answers: 2
image
Business, 22.06.2019 19:00, whitbol
The demand curve determines equilibrium price in a market. is a graphical representation of the relationship between price and quantity demanded. depicts the relationship between production costs and output. is a graphical representation of the relationship between price and quantity supplied.
Answers: 1
image
Business, 22.06.2019 19:40, mahoganyking16
Chang corp. has $375,000 of assets, and it uses only common equity capital (zero debt). its sales for the last year were $595,000, and its net income was $25,000. stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15.0%. what profit margin would the firm need in order to achieve the 15% roe, holding everything else constant? a. 9.45%b. 9.93%c. 10.42%d. 10.94%e. 11.49%
Answers: 2
image
Business, 22.06.2019 20:40, kaylee0424
Financial performance is measured in many ways. requirements 1. explain the difference between lag and lead indicators. 2. the following is a list of financial measures. indicate whether each is a lag or lead indicator: a. income statement shows net income of $100,000 b. listing of next week's orders of $50,000 c. trend showing that average hits on the redesigned website are increasing at 5% per week d. price sheet from vendor reflecting that cost per pound of sugar for the next month is $2 e. contract signed last month with large retail store that guarantees a minimum shelf space for grandpa's overloaded chocolate cookies for the next year
Answers: 2
Do you know the correct answer?
The Best Manufacturing Company is considering a new investment. Financial projections for the invest...

Questions in other subjects:

Konu
Physics, 02.09.2020 02:01