Question
In: Finance
Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of...
|
Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of $2.95 million. The fixed asset is eligible for 100 percent bonus depreciation in the first year. At the end of the project, the asset can be sold for $410,000. The project is expected to generate $2.75 million in annual sales, with annual expenses of $925,000. The project will require an initial investment of $460,000 in NWC that will be returned at the end of the project. The corporate tax rate is 21 and the project has a required return of 13 percent. |
|
What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
Solutions
jeff jeffy answered 4 months agoRelated Solutions
Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of...
Simmons, Inc., is considering a new 4-year project that requires
an initial fixed asset investment of $3.7 million. The fixed asset
is eligible for 100 percent bonus depreciation in the first year.
At the end of the project, the asset can be sold for $465,000. The
project is expected to generate $3.3 million in annual sales, with
annual expenses of $980,000. The project will require an initial
investment of $515,000 in NWC that will be returned at the end of...
Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of...
Simmons, Inc., is considering a new 4-year project that requires
an initial fixed asset investment of $3.1 million. The fixed asset
is eligible for 100 percent bonus depreciation in the first year.
At the end of the project, the asset can be sold for $425,000. The
project is expected to generate $2.9 million in annual sales, with
annual expenses of $940,000. The project will require an initial
investment of $475,000 in NWC that will be returned at the end of...
Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of...
Simmons, Inc., is considering a new 4-year project that requires
an initial fixed asset investment of $3.5 million. The fixed asset
is eligible for 100 percent bonus depreciation in the first year.
At the end of the project, the asset can be sold for $445,000. The
project is expected to generate $3.1 million in annual sales, with
annual expenses of $960,000. The project will require an initial
investment of $495,000 in NWC that will be returned at the end of...
Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of...
Simmons, Inc., is considering a new 4-year project that requires
an initial fixed asset investment of $2.7 million. The fixed asset
is eligible for 100 percent bonus depreciation in the first year.
At the end of the project, the asset can be sold for $385,000. The
project is expected to generate $2.5 million in annual sales, with
annual expenses of $900,000. The project will require an initial
investment of $435,000 in NWC that will be returned at the end of...
Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of...
Simmons, Inc., is considering a new 4-year project that requires
an initial fixed asset investment of $3.65 million. The fixed asset
is eligible for 100 percent bonus depreciation in the first year.
At the end of the project, the asset can be sold for $460,000. The
project is expected to generate $3.25 million in annual sales, with
annual expenses of $975,000. The project will require an initial
investment of $510,000 in NWC that will be returned at the end of...
Simmons, Inc., is considering a new 4-year project that requires an initial fixed asset investment of...
Simmons, Inc., is considering a new 4-year project that requires
an initial fixed asset investment of $2.65 million. The fixed asset
is eligible for 100 percent bonus depreciation in the first year.
At the end of the project, the asset can be sold for $395,000. The
project is expected to generate $2.45 million in annual sales, with
annual expenses of $950,000. The project will require an initial
investment of $420,000 in NWC that will be returned at the end of...
Explorer, Inc. is considering a new 4-year project that requires an initial fixed asset (equipment) investment...
Explorer, Inc. is considering a new 4-year project that requires
an initial fixed asset (equipment) investment of $200,000. The
fixed asset is three-year MACRS property for tax purposes. In four
years, the equipment will be worth about half of what we paid for
it. The project is estimated to generate $500,000 in annual sales,
with costs of $400,000. The firm has to invest $100,000 in net
working capital at the start. After that, net working capital
requirements will be 25...
"Explorer, Inc. is considering a new 4-year project that requires an initial fixed asset (equipment) investment...
"Explorer, Inc. is considering a new 4-year project that
requires an initial fixed asset (equipment) investment of $200,000.
The fixed asset is three-year MACRS property for tax purposes. In
four years, the equipment will be worth about half of what we paid
for it. The project is estimated to generate $500,000 in annual
sales, with costs of $400,000. The firm has to invest $100,000 in
net working capital at the start. After that, net working capital
requirements will be 25...
Your company is considering a new 4-year project that requires an initial fixed asset investment of...
Your company is considering a new 4-year project that requires
an initial fixed asset investment of $3.25 million. The fixed asset
is eligible for 100 percent bonus depreciation in the first year
(which means can all be depreciated in year 1). At the end of the
project, the asset can be sold for $440,000. The project is
expected to generate $3.05 million in annual sales, with annual
expenses of $955,000. The project will require an initial
investment of $490,000 in...
Quad Enterprises is considering a new 4-year expansion project that requires an initial fixed asset investment...
Quad Enterprises is considering a new 4-year expansion project
that requires an initial fixed asset investment of $2.322 million.
The fixed asset will be depreciated straight-line to zero over its
4-year tax life, after which time it will be worthless. The project
is estimated to generate $2,064,000 in annual sales, with costs of
$825,600.
If the tax rate is 25 percent, what is the OCF for this
project?
Multiple Choice
$493,425
$1,020,229
$1,127,621
$1,238,400
$1,073,925
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A 0.0038 kg leaf falls 16.8 m to the ground, where it lands with a speed...
- Problem 1: In the figure to the right, m1=20.0kg and α=53.1o . The coefficient of kinetic...
- A palindrome is a string whose reversal is identical to the string. For example, 110010011 is...
- Explain how the shape of the load duration curve for a particular system affects the selection...
- For physics discussion post. Please TYPE the response as I struggle with reading written information. Explain...
- Consider a file system using a multi-level indexing scheme in inodes as the file organization. In...
- 1a) A sample of a new cleaning product, "Joe's Famous Bleach Cleaner," with a mass of...
ADVERTISEMENT