Question: Ausels is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over

Ausels is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project, the fixed assets can be sold for 15 percent of their original cost. The project is expected to increase the annual sales of $928,000 and costs of $721,000. The tax rate is 35 percent and the required rate of return is 14.6 percent. What is the operating cash flow for this project?

$164,300

$122,000

$219,550

$175,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Consider the circuit shown in Figure P6.76 with transistor parameters \(\beta=120\) and \(V_{A}=\infty\). (a) Determine the small-signal parameters \(g_{m}, r_{\pi}\), and \(r_{o}\) for both...

Q:

Save Anower Question 25 3.3 points Ausel's is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten...

Q:

Ausel's is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project,...

Q:

Ausels is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project, the...

Q:

Ausels is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project, the...

Q:

Ausels is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project, the...

Q:

Given that the cost of common stock is 15 percent, dividends just paid are $1.25 per share and the price of the stock is $13 per share, what is the annual growth rate of dividends? O A 5.30% OB....

Q:

Ausels is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project, the...

Q:

#Moving to another question will save this response. Question 6 of 31 Question 6 33 points Ausel's is considering a ten-year project that will require $850,000 for new fixed assets that will be...

Q:

Ausels is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project, the...

Q:

Ausel's is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project,...

Q:

Make Your Database Normal Database normalization helps structure the data in your tables to help reduce data redundancy and improve data integrity. Edgar F. Codd first proposed normalization as part...

Q:

Continue with Question 6.6 but now consider the following model: Yi = B0 + B1Xi + B2D2i + B3D3i + B4 (D2iXi) + B5 (D3iXi) + ui a. What is the difference between this model and the one given in...

Q:

2. After Copper Connection paid its employees on July 15 and recorded the corporations share of payroll taxes for the payroll paid that date, the firms general ledger showed a balance of $20,584 in...

Q:

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...