Finance Problems 1) What is the initial outlay, given the following information: Equipment Price. $375,000 Installation. 10,000
Question:
Finance Problems
1) What is the initial outlay, given the following information:
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Equipment Price. $375,000
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Installation. 10,000
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Power Survey 30,000
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Shipping. 8,000
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Working Capital 100,000
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Project Marketing Report 15,000
2) What is the net equipment cost, given the following, when a new piece of equipment replaces an old one:
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Old equipment sells for $125,000
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Book value of old equipment 22,000
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TaxRate 40%
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New equipment cost 800,000
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Site survey 18,000
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Installation cost 20,000
3) Equipment is sold for $30,000 at the end of a project. The working capital return is $50,000. The tax rate is 40%. What is the terminal cash flow?
4) A piece of equipment was sold at the end of a project. The project received $85,000 for the equipment that carried a book value of $75,000. The tax rate is 35%. What is the salvage value?
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary