Consider a plant with the following capital investment, sales revenues, and cost of manufacturing: (50 pts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider a plant with the following capital investment, sales revenues, and cost of manufacturing: (50 pts broken out below) Capital Amount (in millions) Land $10 (end of year 0) Fixed Capital Investment $25 (end of year 1), $75 (end of year 2), $100 (end of year 3) Working capital $50 Sales revenue: $60 first year, $120remaining years $20 first year, $30 remaining years Cost of manufacturing COM 50% Tax rate (1) Salvage value $30 Depreciation MACRS with 5-year recovery period (see Table 9.2) Project life 8 years after start-up 8% p.a. Discount rate Calculate and report the following intermediate values (round to nearest 0.1 millions): a Years and non-zero investments (label each investment entry), (5 pts) b. Years and depreciation amounts (should sum to FCI excluding land), (5 pts) c. Last year's and even years' cash flow from operations, (5 pts) d. Last year's and even years' total cash flow, (5 pts) e. Last year's and even years' cumulative discounted cash flow (10 pts) Consider a plant with the following capital investment, sales revenues, and cost of manufacturing: (50 pts broken out below) Capital Amount (in millions) Land $10 (end of year 0) Fixed Capital Investment $25 (end of year 1), $75 (end of year 2), $100 (end of year 3) Working capital $50 Sales revenue: $60 first year, $120remaining years $20 first year, $30 remaining years Cost of manufacturing COM 50% Tax rate (1) Salvage value $30 Depreciation MACRS with 5-year recovery period (see Table 9.2) Project life 8 years after start-up 8% p.a. Discount rate Calculate and report the following intermediate values (round to nearest 0.1 millions): a Years and non-zero investments (label each investment entry), (5 pts) b. Years and depreciation amounts (should sum to FCI excluding land), (5 pts) c. Last year's and even years' cash flow from operations, (5 pts) d. Last year's and even years' total cash flow, (5 pts) e. Last year's and even years' cumulative discounted cash flow (10 pts)
Expert Answer:
Answer rating: 100% (QA)
a Years and nonzero investments label each investment entry 5 p... View the full answer
Related Book For
Essentials of Accounting for Governmental and Not-for-Profit Organizations
ISBN: 978-0073527055
10th Edition
Authors: Paul A. Copley
Posted Date:
Students also viewed these accounting questions
-
Cash flow from operations was $700,000 for 2011 and $863,000 for 2012. Does this suggest that management of Great Oaks Furniture has manipulated earnings upward in these years? The following...
-
Cash flow from operations in a business is different than net income from operations in the same business. Discuss the difference in these two measurements of company activity. Which is most...
-
The MoMi Corporations cash flow from operations before interest and taxes was $2 million in the year just ended, and it expects that this will grow by 5% per year forever. To make this happen, the...
-
What is control resolution in a robot positioning system?
-
How does the use of probability- proportional- to-size selection provide an increased chance of sampling larger items?
-
You have been appointed as the accountant of A&L Manufacturing for the June 20x1 year end. The previous accountant had never accounted for depreciation, thus, resulting in inaccurate financial...
-
Find the free-vibration response of a rectangular membrane of sides \(a\) and \(b\) subject to the following initial conditions: \[\begin{aligned}& w(x, y, 0)=w_{0} \sin \frac{\pi x}{a} \sin...
-
The following trial balance was prepared for Tile, Etc., Inc., on December 31, 2016, after the closing entries were posted: Tile, Etc. had the following transactions in 2017: 1. Purchased merchandise...
-
You are working with a team that is responsible for storing students' phone numbers in computer format. The team is debating between storing phone numbers as strings vs integers. You have the...
-
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2020. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from...
-
Write a Java program to convert and display the contents of a two-dimensional array. The array data type must be integer. The array has the following data: arrayInteger = {{0, 1, 0},{1, 1, 0}} The...
-
1. Give one brief example of the so-called "reciprocal" trade (trade in which both sides benefited and no force was employed) of antiquity. 2. The two central causes of the demise of the trade-based...
-
Define the Democratic leadership style (Provide scholarly support) Examples of a Democratic leadership style of a person and a company (Provide scholarly support)
-
Consider the following pricewise-defined function f(x) 100) = {-3}+6 if x
-
Tom and Jerry opened a new lawn service. They provide three types of services: mowing, fertilizing, and planting trees. The cost of mowing is $35.00 per 5000 square yards, fertilizing is $30.00 per...
-
A palindrome is a string that is the same when reversed. For example, "abba" is a palindrome. Here is a math-like definition: palindrome ("") = true palindrome ( x ) = true palindrome (x+x+y) =...
-
a) An infinite composite slab is made up of glass wool insulation packed in the space between two thin metal sheets (0.5 mm thick). The metal sheets are 2 cm apart. The outer faces of the metal...
-
What exactly is a prima facie duty? How does an ethic of prima facie duties differ from monistic and absolutist ethical theories?
-
A concerned citizen provides resources and establishes a trust with the local government. What factors should be considered in determining which fund to report the trust activities?
-
Residents of a neighborhood financed the installation of sidewalks through a note payable. The note was to be repaid through a special assessment tax on their properties. When is it appropriate to...
-
Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Boards Why Governmental...
-
What are the resources of the organization? How are these used in management decision making?
-
Define management and indicate what its principal purposes are and why managers are essential to organizations.
-
Through the implementation of efficient and effective management, New Belgium Brewing (NBB) has grown from operating out of the founder's basement to having two state-of-the-art facilities and over...
Study smarter with the SolutionInn App