Question

You are a project manager. You are estimating cash flows of a potential project that requires investment of 400,000in a machine, including installation cost, and $60,000 in working capital which will be fully captures at the end of the project. The machine has the estimated life of 7 years and will be depreciated vie simplified straight-line method. The project is expected to raise the firm's revenues by $330,000 and costs by $125,000 annually. the machine you purchase for the project can be sold for $70,000. The firm has the marginal tax rate of 34%. What is the terminal value of the project? (please show all work)

Answer #1

You are a project manager. You are estimating cash flows of a
potential project that requires investment of $250,000 in a
machine, including installation cost, and $40,000 in working
capital which will be fully captures at the end of the project. The
marchine has the estimated life of 5 years and will be depreciated
vie simplified straight-line method. The project is expected to
raise the firm's revenues by $330,000 and costs by $125,000
annually. Since the trend of the product...

You are a project manager. You are estimating cash flows of a
potential project that requires investment of $250,000 in a
machine, including installation cost, and $40,000 in working
capital which will be fully captures at the end of the project. The
marchine has the estimated life of 5 years and will be depreciated
vie simplified straight-line method. The project is expected to
raise the firm's revenues by $330,000 and costs by $125,000
annually. Since the trend of the product...

You are a project manager. You are estimating cash flows of a
potential project that requires investment of $250,000 in a
machine, including installation cost, and $40,000 in working
capital which will be fully captures at the end of the project. The
machine has the estimated life of 5 years and will be depreciated
vie simplified straight-line method. The project is expected to
raise the firm's revenues by $330,000 and costs by $125,000
annually. Since the trend of the product...

You are a project manager. You are estimating the cash flows of
a potential project that requires an investment of $200,000,
including installation cost, and $30,000 in working capital, which
will be fully recaptured at the end of the project. The machine has
an estimated life of six years and will be depreciated via the
simplified straight-line method. The project is expected to raise
the firm’s annual revenues by $330,000 and increase annual costs by
$125,000. The machine you purchase...

You are a project manager. You are estimating the cash flows of
a potential project that requires an investment of $200,000,
including installation cost, and $30,000 in working capital, which
will be fully recaptured at the end of the project. The machine has
an estimated life of six years and will be depreciated via the
simplified straight-line method. The project is expected to raise
the firm’s annual revenues by $330,000 and increase annual costs by
$125,000. The machine you purchase...

XYZ Company is considering whether a project requiring the
purchase of new equipment is worth investing. The cost of a new
machine is $340,000 including shipping and installation. The
project will increase annual revenues by $400,000 and annual costs
by $100,000. The machine will be depreciated via straight-line
depreciation for three years to a salvage value of $40,000. If the
firm does this project, $30,000 in net working capital will be
required, which will be fully recaptured at the end...

A new expansion project will produce operating cash flows of
$90,000 a year for four years. During the life of the project,
inventory will increase by $35,000 and accounts receivable will
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wages payable will increase by $5,000. At the end of the project,
net working capital will return to its normal level. The project
requires the purchase of equipment at an initial cost of $70,000.
Equipment delivery and installation costs...

(Calculating project cash flows and NPV) The Guo Chemical
Corporation is considering the purchase of a chemical analysis
machine. The purchase of this machine will result in an increase in
earnings before interest and taxes of $90,000 per year. The
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(Calculating project cash flows and?
NPV)???Garcia's Truckin', Inc. is considering the purchase
of a new production machine for $200,000.The purchase of this
machine will result in an increase in earnings before interest and
taxes of $50,000 per year. To operate this machine? properly,
workers would have to go through a brief training session that
would cost$5,000
after tax. In? addition, it would cost 5,000 after tax to
install this machine correctly. ? Also, because this machine is
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