Work Hard Ltd has completed a feasibility study costing $11,374 to determine if there is any benefit in purchasing a new asset. The machine will cost $349,325 and an additional $23,593 will need to spent to have the machine in operational state. Before the machine can be used staff must be trained at a further cost of $7,136.

The project is expected to last for 5 years and the Taxation Office has confirmed this. At the end of the project the machine will be fully depreciated.

Initial advertising costs are expected to $35,197 and additional stock of $5,937 will be needed. Wages will change from $93,240 to $64,130 and Fixed Costs will remain at $56,575.

The new machine is expected to produce sales of $1,653,749 in the first year and will grow by 14% each year of the project. Material costs will be 27% of sales in each year.

You are required to calculate the net cash flow that would appear in Year 0 of a Capital Budget.

Assume the Australian Company tax Rate applies.

question 2

Swindler Ltd has completed a feasibility study costing $22,423 to determine if there is any benefit in purchasing a new asset. The machine will cost $277,594 and an additional $20,986 will need to spent to have the machine in operational state. Before the machine can be used staff must be trained at a further cost of $9,304.

The project is expected to last for 5 years and the Taxation Office has confirmed this. At the end of the project the machine will be fully depreciated.

Initial advertising costs are expected to $30,064 and additional stock of $6,429 will be needed. Wages will change from $92,282 to $69,542 and Fixed Costs will remain at $61,872.

The new machine is expected to produce sales of $1,967,893 in the first year and will grow by 11% each year of the project. Material costs will be 27% of sales in each year.

You are required to calculate the net cash flow (round to the nearest dollar and DO NOT include $ sign) that would appear in Year 0 of a Capital Budget.

Assume the Australian Company tax Rate applies.

question3

Swindler Ltd has completed a feasibility study costing $22,423 to determine if there is any benefit in purchasing a new asset. The machine will cost $277,594 and an additional $20,986 will need to spent to have the machine in operational state. Before the machine can be used staff must be trained at a further cost of $9,304.

The project is expected to last for 5 years and the Taxation Office has confirmed this. At the end of the project the machine will be fully depreciated.

Initial advertising costs are expected to $30,064 and additional stock of $6,429 will be needed. Wages will change from $92,282 to $69,542 and Fixed Costs will remain at $61,872.

The new machine is expected to produce sales of $1,967,893 in the first year and will grow by 11% each year of the project. Material costs will be 27% of sales in each year.

You are required to calculate the net cash flow (round to the nearest dollar and DO NOT include $ sign) that would appear in Year 0 of a Capital Budget.

Assume the Australian Company tax Rate applies.