Question: please do not round until the end answer only 7,8,9 please 12 XYZ Company is considering whether a project requiring the purchase of new equipment

 please do not round until the end answer only 7,8,9 please
12 XYZ Company is considering whether a project requiring the purchase of
please do not round until the end
answer only 7,8,9 please

12 XYZ Company is considering whether a project requiring the purchase of new equipment is worth investing. The cost of a new machine is $340,000 including shipping and installation. The project will increase annual revenues by $400,000 and annual costs by $100,000. The machine will be depreciated via straight-line depreciation for three years to a salvage value of $40,000. If the firm does this project, $30,000 in net working capital will be required, which will be fully recaptured at the end of the project. The estimated salvage value of the machine after the project is $30,000. What is the terminal value of this project if the tax rate is 40 %? Round to the nearest penny. Do not include a dollar sign in your answer. 108400.00 You are evaluating a capital project with a Net Investment of $400,000, which includes an increase in net working capital of $16,000. The project has a life of 12 years with an expected salvage value of $3,000. The project will be depreciated via simplified straight- line depreciation. Revenues are expected to increase by $90,000 per year and operating expenses by $8,000 per year. The firms marginal tax rate is 40 percent and the cost of capital for this project is 15%. What is the net present value of this project? Round to the nearest penny. Do not include a dollar sign. 10 -60594.67 Submit Assessment 7 XYZ Company is considering a project that requires a new equipment. The new machine will cost the firm $220,000. In order to have the machine in working condition, XYZ will spend $7,000 in installation and $3,000 in shipping. Since it will produce more, a $10,000 investment in net working capital is required. The new machine will be depreciated over the straight-line depreciation method down to the salvage value of $5,000. The life of the asset is 5 years. What is the depreciation expense of this project in Year 2? Round to the nearest penny. Do not include a dollar sign in your answer. 45000.00 You are a project manager. You are estimating cash flows of a potential project that requires investment of $250,000 in a machine, including installation cost, and $40,000 in working capital which will be fully captures at the end of the project. The marchine has the estimated life of 5 years and will be depreciated vie simplified straight-line method. The project is expected to raise the firm's revenues by $330,000 and costs by $125,000 annually. Since the trend of the product moves rapidly, you expect to terminate this project in 3 years. In 3 years, the machine you purchase for the project can be sold for $50,000. The firm has the marginal tax rate of 34%. What is the annual cash flow in the second year? Round to the nearest penny. Do not include a dollar sign in your answer. 152300.00

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