Question: A proposed capat penditure project Wolves purchasing and installing new equipment. The equipment will cost $20.000 with an additonal 51.500 charge for delivery, Installation is
A proposed capat penditure project Wolves purchasing and installing new equipment. The equipment will cost $20.000 with an additonal 51.500 charge for delivery, Installation is estimated to be A 000. The methance life of years and strated value of $6,000. The project requires an additional working capital investment of 1,000. The project revenues are forecast at $35.000 per year and cash expenses are estimated at 15.000 per yes. The firm has a 40 marginal tax rate and a weighted average cost of capital Annual depreciation is expected Is in by 12.0321 eye, assuming simple stragine depreciation Calculate the one time and of project cash flows from this proposed project $9.000 512.000 51.600 $20.000 None of the items is correct A proposed capital expenditure project involves purchasing and installing new equipment. The equipment will cost 520,000, with an additional $1,500 charge for delivery, Installation is estimated to be 4.000. The equipment has an expected life of 9 years and estimated salvage value of $6.000. The project requires an additional working capital investment of 56,000. The project revenues are forecast at $35.000 per year and cash expenses are estimated at 515.000 per year. The firm has a 40 marginal tax rate and a 8 weighted average cost of capital. Annual depreciation is expected to increase by 52.33.33 per year, assuming simplified straight-line depreciation Calculate the one time end of project cash flows from this proposed project. 59.600 512.000 52.600 $20.000 None of the listed items is correct A Moving to another question will save this response Question 11 of 18 Question 11 10 points A proposed capital expenditure project wolves purchasing and installing new equipment. The equipment will cost 520,000, with an additional $1.500 charge for delivery, Installation is estimated to be 14.000. The equipment has an expected life of years and estimated salvage value of 56.000. The project requires an additional working capital investment of $6,000. The project revenues are forecast at 535.000 per year and cash expenses are estimated at $15.000 per year. The term has a low marginal tax rate and an weighted average cost of capital. Annual depreciation is expected to increase by $2.833.33 per year, assuming simplified straight-line depreciation Calculate the one-time end of project cash flows from this proposed project 5.600 512.000 53000 $20.000 None of the listed items is correct
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