Required Investment = $80,000. Project life = 2 years. Salvage value =$30,000. CCA rate = 20% declining balance and 50% rule applies. Annual revenues = $90,000 and annual O&M costs = $20,000. Marginal tax rate = 30%. Assume all the values provided here are in constant dollars, similar to how it's done on slide 38 of Ch.14. Find the net present worth of the project. The MARR' = 10% and inflation rate =6%. The NPW is within $50 of which of the following: %3D %3D O 40,042 40,142 40,242 40,342 40,442 None of the above

Required Investment = $80,000. Project life = 2 years. Salvage value =$30,000. CCA rate = 20% declining balance and 50% rule applies. Annual revenues = $90,000 and annual O&M costs = $20,000. Marginal tax rate = 30%. Assume all the values provided here are in constant dollars, similar to how it's done on slide 38 of Ch.14. Find the net present worth of the project. The MARR' = 10% and inflation rate =6%. The NPW is within $50 of which of the following: %3D %3D O 40,042 40,142 40,242 40,342 40,442 None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Given the following information, what is the financial break-even point? Initial investment = $250,000; variable cost = $95; fixed cost = $58,000; price = $130; life = 6 years; required return = 12%; SL depreciation; before-tax salvage value of assets = $28,000; initial net working capital investment = $35,000, and tax rate is 21%. Do It correctly I'll rate
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1. Batinah Water Desalination project is a 15 year project. The project manager estimated that net initial investment expend in year zero is 100 million rials. The investment will be depreciated on a straight line basis to a 10 million book value by enc the project. During the operating phase revenue per year is 35 million and expense per year is estimated to be 20 million ria per year for 15 years. In year 15 net salvage value is estimated to be 15 million. WACC is estimated to be 10%. Tax Rate 209 1. Calculațe annual depreciation expenses 2. Calculate cash flow after tax CFAT in year 5 3. Calculate net present value. 4. Is it a good project Only final answers are required
A project is expected to generate annual revenues of $ 119, 300, with variable costs of $75, 400, and fixed costs of $15,900. The annual depreciation is $3,950 and the tax rate is 34 percent. What is the annual operating cash flow? Multiple Choice $61, 143 $19, 823 $45, 243 $ 28,000 $31,950
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3. A project requires an initial investment of $1,000,000 and generates annual income of $300,000 for the next 4 years with a salvage value of $200,000. At MARR of 10% determine if this is a good investment. Use MACRS with the depreciation life of 3 years. Effective tax rate is 40%. Use PW.
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Subject: accounting
A 5-year project is expected to generate revenues of $100000, variable costs of $24000, and fixed costs of $16500. The annual depreciation is $12000 and the tax rate is 35 percent. What is the annual operating cash flow? a. $43,275. b. $40,875. c. $43,000. d. $44,500. e. $42,875.
A project is expected to generate annual revenues of $124,100, with variable costs of $77,200, and fixed costs of $17,700. The annual depreciation is $4,250 and the tax rate is 23 percent. What is the annual operating cash flow? Multiple Choice $47,878 $23,462 $33,450 $29,200 $65,578
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