Question: Woodard Pools is evaluating a project which will increase annual sales by $55,000 and costs by $20,000. The project has an initial asset cost of

Woodard Pools is evaluating a project which will increase annual sales by $55,000 and costs by $20,000. The project has an initial asset cost of $150,000 that will be depreciated straight-line to a zero book value over the 5-year life of the project. Ignore bonus depreciation. The applicable tax rate is 21 percent. What is the annual operating cash flow for this project?

$33,950

$35,500

$47,900

$31,350

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Woodard Pools is evaluating a project which will increase annual sales by $50,000 and costs by $30,000. The project has an initial asset cost of $150,000 that will be depreciated straightline to a...

Q:

Woodard Pools is evaluating a project which will increase annual sales by $50,000 and costs by $30,000. The project has an initial asset cost of $150,000 that will be depreciated straightline to a...

Q:

Woodard Pools is evaluating a project which will increase annual sales by $ 5 0 , 0 0 0 and costs by $ 3 0 , 0 0 0 . The project has an initial asset cost of $ 1 5 0 , 0 0 0 that will be depreciated...

Q:

Woodard Pools is evaluating a project which will increase annual sales by $55,000 and costs by $20,000. The project has an initial asset cost of $150,000 that will be depreciated straight-line to a...

Q:

Woodard Pools is evaluating a project which will increase annual sales by $ 5 0 , 0 0 0 and costs by $ 3 0 , 0 0 0 . The project has an initial asset cost of $ 1 5 0 , 0 0 0 that will be depreciated...

Q:

1. A company spent $1,000 last week repairing a machine. This week, the company is trying to decide if the machine can be better utilized if they assigned it a proposed project. To support the...

Q:

The following information applies to the next six questions.) Burress Beverages is considering a project where they would open a new facility in Seattle, Washington. The companys CFO has assembled...

Q:

16. If a project has a net present value equal to zero, then: A. a decrease in the project's initial cost will cause the project to have a negative NPV. B. the project earns a zero rate of return. C....

Q:

Hello everyone, please could someone help me with a finances homework?. Thank you \f45. Decreasing which one of the following will increase the acceptability of a project? A. sunk costs B. salvage...

Q:

4) Sun Lee's is considering two mutually exclusive projects that have been assigned the same discount rate of 10.5 percent. Project A has an initial cost of $54,500, and should produce cash inflows...

Q:

8. Which term describes an action that can damage or compromisean asset? A. Risk B. Vulnerability C. Countermeasure D. Threat 10. Which type of attack involves the creation of some deceptionin order...

Q:

There is a single debt issue. Compute the yield on this debt assuming that it matures in 1 year and has a maturity value of $127.42, 2 years with a maturity value of $135.30, 5 years with a maturity...

Q:

Insurers are required to maintain files of policy forms, applications, and advertising for how many years after the effective date? A ) 5 B ) 3 C ) 4 D ) 2

Q:

A business acquired a long-lived tangible asset on January 1, Year 1. It recorded a liability for an asset retirement obligation (ARO), and it depreciates the asset retirement cost (ARC), using the...

Q:

Consider a fast hopping binary ASK system. The AWGN spectrum equals Sn (f) = 10-6 and the binary signal amplitudes are 0 and 2 V, respectively. The ASK uses a data rate of 100 kbit/s and is detected...

Q:

Clayton McNulty, owner of McNultys Muscular Materials (MMM), is sitting in his dim office located at the top of an old brown brick building, in an industrial area of South Boston. Clayton had just...

Q:

Write a program named SortWords that includes a method named SortAndDisplayWords that accepts any number of words, sorts them in alphabetical order, and displays the sorted words separated by spaces....

Q:

Review the pros and cons of outsourcing (for both organizations that enter into this agreement).

Q:

Among a group of 5 8 programmers, who know either Java or Python or both, 1 5 only know Java and 1 3 only know Python. What is the probability of randomly choosing a programmer who knows both...

Q:

4. Give examples of how a communication situation can change from a win-lose to a winwin situation.

Q:

3. Why is the following statement, If the Church is a context, it is because it is inside our heads, correct?

Q:

1. Discuss the following statements: a) Jeppe drinks because Holberg (the author) forced him to. b) When the soup you are served tastes bad, complain to the cookbook publisher. c) The purpose of an...