LOL Ltd is a mining company and is evaluating a new plant for a coal mine. The

Fantastic news! We've Found the answer you've been seeking!

Question:

LOL Ltd is a mining company and is evaluating a new plant for a coal mine. The plant project will last for ten years and LOL has been given the following estimates that relate to running the new plant. The new plant will cost $330,000. The plant will have no value in ten years’ time. LOL depreciates all assets over a ten year life span. The taxation office has provided advice to LOL that the plant are depreciated over 18 years. The project will require an investment in inventory of $120,000 at the start of the project. The interest on the loan is $18,000 per year. The company pays dividends of $200,000 per year. The company tax rate is 30%. What is the total cash flow at the end of the project.

Posted Date: Oct 06, 2021 02:51 PM

See More Questions

What does the total cash flow computed on the statement of cash flows reconcile to? Explain.
The transport cost is about K25 for each 50km segment of transporting a bulk product. If the destination market price is K80, (a) formulate the price-distance relationship equation (b) generate a...
The CFO of Bogey Golf has been given the following information about two mutually exclusive investments: The CFO normally uses a risk-adjusted required rate of return to evaluate such investments....
Q-1 A motor car shaft consists of a steel tube 30 mm internal diameter and 4 mm thick. The engine develops 10 kW at 2000 r.p.m. Find the maximum shear stress in the tube when the power is transmitted...
What are alternatives, other than carrying large sums of cash, to avoid a bank hold on Kyras money? Discuss.
Glover Chemical purchased 100 percent of the outstanding stock of Ward Supply on December 31 for $100,000 cash. As of that date, the FMVs of the inventory and fixed assets of Ward equaled $70,000 and...
Kemesia Boota Ward signed a contract on February 17, 2010, to hold her wedding reception at the Deauville Hotel on July 9, 2010. (The wedding ceremony was being held elsewhere.) Renting the ballroom...
Chudrick Inc. makes unfinished bookcases that it sells for $62. Production costs are $36 variable and $10 fixed. Because it has unused capacity, Chudrick is considering finishing the bookcases and...
G is an individual GST registrant that files GST returns annually. At the beginning of year 20XX, G incorporated their sole proprietorship into G Inc., a wholly owned subsidiary of G, and registered...
Use Worksheet 14.1 to help Paul and Crystal Meyer, whod like to retire in about 20 years. Both have promising careers, and both make good money. As a result, theyre willing to put aside whatever is...
A milk company has four machines that fill gallon jugs with milk. The quality control manager is interested in determining whether the average fill for these machines is the same. The following data...
Show that $\frac{1}{2} x^{2}-5$ is an antiderivative of $x$.
In Problems 21-38, guess the requested limits. $\lim _{n ightarrow \infty} \frac{n+1}{2 n}$
An object moving in a straight line travels $d$ miles in $t$ hours according to the formula \[d(t)=\frac{1}{5} t^{2}+5 t\] What is the object's velocity when $t=5$ ?
Show that $2 x^{3}-3$ is an antiderivative of $6 x^{2}$.
In Problems 21-38, guess the requested limits. $\lim _{n ightarrow \infty} \frac{100}{n}$
How would an unreflective teacher, who does not teach using generic levels of skill proficiency, teach a lesson?
The comparative statements of financial position of Menachem NV at the beginning and end of the year 2019 appear below. Net income of ¬34,000 was reported, and dividends of ¬23,000 were paid...
Here we have yet another pharmaceutical insider trading case. Elan Corporation and Wyeth were jointly developing an Alzheimers drug. Steven Martoma, a portfolio manager at a hedge fund, began...
For the last five years, Madison has worked 20 hours per week at Save Right Pharmacy. She has always been a reliable and efficient employee. When her mother became seriously ill, Madison notified...
The Brian B. Sand & Zachary B. Sand Joint Trust (the Trust) sued the Biotechnology Value Fund (BVF) under Section 16(b) of the Securities Exchange Act of 1934. Mark Lampert controlled BVF as well as...

LOL Ltd is a mining company and is evaluating a new plant for a coal mine. The

Question:

Expert Answer:

Total cash flow at the end of the period Depreciation as per ta... View the full answer

Students also viewed these accounting questions