subject
Business, 18.02.2020 05:11 mdg5605

For a new process, the land was purchased for $10 million. The fixed capital investment, paid at the end of year 0, is $165 million. The working capital is $15 million, and the salvage value is $15 million. The estimated revenue from years 1 through 10 is $70 million/y, and the estimated cost of manufacture over the same period is $25 million/y. The internal hurdle rate (interest rate) is $14% p. a., before taxes, and the taxation rate is 40%.

a. Draw a discrete, nondiscounted cash flow diagram for this process.

b. Determine the yearly depreciation schedule using the five-year MACRS method.

c. Determine the after-tax profit for each year.

d. Determine the after-tax cash flow for each year.

e. Draw a discrete, discounted (to year 0) cash flow diagram for this process.

f. Draw a cumulative, discounted (to year 0) cash flow diagram for this process.

g. What is the present value (year 0) of this process?

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 08:00
Companies in the u.s. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual revenue. in 2011 hertz had 320,000 cars in service and annual revenue of approximately $4.2 billion. the following data show the number of cars in service (1000s) and the annual revenue ($ millions) for six smaller car rental companies (auto rental news website, august 7, 2012). excel file: data14-09.xls if required, enter negative values as negative numbers. a. select a scatter diagram with the number of cars in service as the independent variable. b. what does the scatter diagram developed in part (a) indicate about the relationship between the two variables? c. use the least squares method to develop the estimated regression equation (to 3 decimals). Ĺ· = + x d. for every additional car placed in service, estimate how much annual revenue will change. by $ e. fox rent a car has 11,000 cars in service. use the estimated regression equation developed in part (c) to predict annual revenue for fox rent a car. round your answer to nearest whole value. $ million hide feedback partially correct
Answers: 1
question
Business, 22.06.2019 10:30
Describe three scenarios in which you might utilize mathematics to investigate a crime scene, accident scene, or to make decisions involving police practice. be sure to explain how math is used in police as they work through each scenario.
Answers: 1
question
Business, 22.06.2019 12:50
Kendrick is leaving his current position at a company, and charlize is taking over. kendrick set up his powerpoint for easy access for himself. charlize needs to work in the program that is easy for her to use. charlize should reset advanced options
Answers: 3
question
Business, 22.06.2019 13:50
The state troopers in one state have a motto, “nine you’re fine; ten you’re mine,” which is the standard that they use for pulling over speeders on the state highways. in other words, if the posted speed limit is 55 mph, drivers can drive at a rate up to 64 mph without fear of getting a ticket. which of the following best describes the ethical culture in the state? a. the troopers are following a standard of positive law. b. the troopers are following a normative standard. c. the troopers are following a headline test. d. the troopers are following the blanchard/peale standard.
Answers: 1
You know the right answer?
For a new process, the land was purchased for $10 million. The fixed capital investment, paid at the...
Questions
question
Biology, 26.01.2021 23:10
question
Mathematics, 26.01.2021 23:10
question
Mathematics, 26.01.2021 23:10
question
Mathematics, 26.01.2021 23:10
Questions on the website: 13722361