Question: 8 & 9 Please! A firm is considering a project with the following information: - Project will require purchase of a machine for $90,029.00 that

A firm is considering a project with the following information: - Project will require purchase of a machine for $90,029.00 that is MACRS depreciable over a five-year schedule. (no depreciation until end of year 1). - Project will require immediate non-depreciable expenses of $26,278.00 TODAY (year 0). - Project will have the following projected balance sheet values of NWC: - Sales for the project will be $57,092.00 per year, with all other expenses (excluding depreciation) at 42.00% of sales. - The tax rate for the firm is 35.00%, while the cost of capital is 13.00% *assume project goes beyond two years What is the project's cash flow for year 1 ? Answer format: Currency: Round to: 2 decimal places. A firm is considering a project with the following information: - Project will require purchase of a machine for $115,395.00 that is MACRS depreciable over a five-year schedule. (no depreciation until end of year 1). - Project will require immediate non-depreciable expenses of $26,679.00 TODAY (year 0). - Project will have the following projected balance sheet values of NWC: - Sales for the project will be $50,862.00 per year, with all other expenses (excluding depreciation) at 45.00% of sales. - The tax rate for the firm is 36.00%, while the cost of capital is 14.00% *assume project goes beyond two years What is the project's cash flow for year 2 ? Answer format: Currency: Round to: 2 decimal places
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
