Powell Corporation is contemplating the purchase of a new machine. The proposed machine's purchase price is...
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Powell Corporation is contemplating the purchase of a new machine. The proposed machine's purchase price is $380,000, and an additional $20,000 will be necessary to install it. It will be depreciated using a 4-year recovery period (Straight line method). The change in net working capital is $17,000. The firm can sell the machine at the end of last year for $80,000 (Salvage Value). The book value is $0. The revenue is $400,000 and the expenses are $200,000. The firm pays taxes at a rate of 40%. Calculate the net cash flows تفكر شركة باول في شراء الة جديدة، سعر شراء الجهاز المقترح هو 200 الف دولار ، وستكون هناك حاجة إلى 20 ألف دولار إضافية لتشيته، سيتم استهلاكها باستخدام فترة استرداد مدتها 4 سنوات (طريقة القسم الثابت)، التغيير في صافي رأس المال العامل هو 17000 دولار، يمكن للشركة بيع الجهاز في نهاية العام الماضي مقابل 80 الف دولار قيمة الإنقاذ). القيمة الدفترية هي 0 دولار الإيرادات 400000 دولار والمصاريف 200000 دولار، تدفع الشركة ضرائب بمعدل 100 احسب صافي التدفقات النقدية Powell Corporation is contemplating the purchase of a new machine. The proposed machine's purchase price is $380,000, and an additional $20,000 will be necessary to install it. It will be depreciated using a 4-year recovery period (Straight line method). The change in net working capital is $17,000. The firm can sell the machine at the end of last year for $80,000 (Salvage Value). The book value is $0. The revenue is $400,000 and the expenses are $200,000. The firm pays taxes at a rate of 40%. Calculate the net cash flows تفكر شركة باول في شراء الة جديدة، سعر شراء الجهاز المقترح هو 200 الف دولار ، وستكون هناك حاجة إلى 20 ألف دولار إضافية لتشيته، سيتم استهلاكها باستخدام فترة استرداد مدتها 4 سنوات (طريقة القسم الثابت)، التغيير في صافي رأس المال العامل هو 17000 دولار، يمكن للشركة بيع الجهاز في نهاية العام الماضي مقابل 80 الف دولار قيمة الإنقاذ). القيمة الدفترية هي 0 دولار الإيرادات 400000 دولار والمصاريف 200000 دولار، تدفع الشركة ضرائب بمعدل 100 احسب صافي التدفقات النقدية
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Lets calculate the net cash flows for the investment in the proposed machine using the given informa... View the full answer
Related Book For
Fundamentals Of Financial Management
ISBN: 9780273713630
13th Revised Edition
Authors: James Van Horne, John Wachowicz
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