Relevant Cash Flows assignment

Complete and submit the RELEVANT CASH FLOWS WORK in the required format.

Income tax rate 30% Capital gains tax rate 15%

  1. You are considering investing in a new asset which costs $75,000. It will cost $5,000 to install this asset. The old asset, which has a book value of $0, can be sold for $25,000. The purchase price of the old asset was $100,000. The new asset will allow you to decrease your inventory by $2,000. What is the initial investment in this asset?
  2. If you purchase the new asset referred to in Problem 1, it will generate revenues of $60,000 per year for the next three years. Expenses will be $20,000 per year. The asset will be depreciated using the straight-line method. The operating cash flows for the old machine are $10,000 each year. What are the marginal operating cash flows for this investment?
  3. Continuing with the potential investment in Problems 1 and 2, at the end of year 3, the new asset will be sold for $50,000. What is the terminal cash flow for this investment?
  4. Based on the cash flows you calculated last week, find the NPV and IRR for this investment. Would you invest or not? Justify your answer.

***Required Format: you must submit your homework in an Excel file. Sheet 1 must contain nothing other than the problem number and your final answer. Sheet 2 must contain the calculations you used to arrive at your final answer.

You can leave a response, or trackback from your own site.

CLICK ORDER NOW TO GET A CUSTOMIZED PAPER ON THIS TOPIC JUST FOR YOU!! 0%PLAGIARISM 100% ORIGINAL PAPER

9 Responses to “Relevant Cash Flows assignment”

  1. 157353 72052A persons Are generally Weight loss is certainly a practical and flexible an eating plan method manufactured for those that suffer that want to weight loss and therefore ultimately conserve a much much more culture. weight loss 595188

  2. 241139 924611I like what you guys are up too. Such smart work and reporting! Carry on the superb works guys Ive incorporated you guys to my blogroll. I believe it will improve the value of my web site 162072

  3. tinysexdolls says:

    294922 570017When visiting blogs, i normally discover a quite very good content material like yours 13985

  4. 351201 551363I was looking for this. Truly refreshing take on the info. Thanks a lot. 15131

  5. 129383 344065quite great post, i undoubtedly adore this exceptional internet site, maintain on it 817160

  6. judi online says:

    451147 598318hello!,I actually like your writing very a great deal! percentage we keep up a correspondence extra about your article on AOL? I need an expert on this location to unravel my problem. May possibly be that is you! Taking a look forward to peer you. 438980

  7. 122499 11920This put up is totaly unrelated to what I used to be looking google for, nevertheless it was indexed on the initial page. I guess your doing something right if Google likes you adequate to location you at the first page of a non related search. 992938

  8. 709437 52834I like this web site its a master peace ! Glad I identified this on google . 9783

  9. 165656 679725I like this weblog its a master peace ! Glad I observed this on google . 510433

Leave a Reply

Powered by WordPress | Designed by: buy backlinks | Thanks to webdesign berlin, House Plans and voucher codes