Question: ues elta Software is considering a new project that will last for 3 years and wh The company needs to buy a new equipment which


ues elta Software is considering a new project that will last for 3 years and wh The company needs to buy a new equipment which will cost $300,000. Other installation costs. The equipment is classified in the 3-year class and will be d percentages are 33.33%, 44.45%, 14.81%, and 7.41%, respectively). The con year, the equipment can be sold for $45,000. Change in Net working capital is $45,000 which will be recovered at the er Annual cash flow: $250,000 $60,000 Sales 21% Other operating costs Tax rate What is the project's terminal cash flow (i.e. cash flow for year 3)? 300,917.50 229.886.70 Not enough information to answer ct that will last for 3 years and whose data are shown below. w equipment which will cost $300,000. Other depreciable costs include $25,000 in ent is classified in the 3-year class and will be depreciated under MACRS (The 45%, 14.81%, and 7.41%, respectively). The company believes that at the end of the 3rd e sold for $45,000. apital is $45,000 which will be recovered at the end of the project. $250,000 $60,000 21% rating costs minal cash flow (i.e. cash flow for year 3)? What is the project's terminal cash flow (i.e. cash flow for year 3)? 300,917.50 229,886.70 Not enough information to answer 160,207.83 Question 40
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