*Motley Cruises is evaluating a proposed new project that has projected sales of $225,000, costs of...

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*Motley Cruises is evaluating a proposed new project that has projected sales of $225,000, costs of $133,000, and depreciation of $24,800. Capital spending for the year is forecast at $53,650. The tax rate is 21 percent. Motley Cruises' net working capital schedule is provided below. What is the company's Total Cash Flow at year end? Accounts Receivable Accounts Payable Year 1 2 3 Beginning of Year $90,155 $72,450 "An asset utilized in a 4-year project falls in the MACRS class for tax purposes. The asset has an acquisition cost of $5,100,000 and will be sold for $1,800,000 at the end of the project. If the tax rate is 21 percent, what is the After-Tax Salvage Value of the asset? 4 5 6 MACRS Percentage Schedule Percentage 20.00% 32.00 19.20 End of Year $101,600 $ 85,230 11.52 11.52 5.76 100.00% *Motley Cruises is evaluating a proposed new project that has projected sales of $225,000, costs of $133,000, and depreciation of $24,800. Capital spending for the year is forecast at $53,650. The tax rate is 21 percent. Motley Cruises' net working capital schedule is provided below. What is the company's Total Cash Flow at year end? Accounts Receivable Accounts Payable Year 1 2 3 Beginning of Year $90,155 $72,450 "An asset utilized in a 4-year project falls in the MACRS class for tax purposes. The asset has an acquisition cost of $5,100,000 and will be sold for $1,800,000 at the end of the project. If the tax rate is 21 percent, what is the After-Tax Salvage Value of the asset? 4 5 6 MACRS Percentage Schedule Percentage 20.00% 32.00 19.20 End of Year $101,600 $ 85,230 11.52 11.52 5.76 100.00%

Answer rating: 100% (QA)

We must take into account projected sales costs depreciation capital expenditures taxes and shifts in net working capital when calculating Motley Crui... View the full answer