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In: Finance
Ausel’s is considering a ten-year project that will require $850,000 for new fixed assets that will...
Ausel’s is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project, the fixed assets can be sold for 15 percent of their original cost. The project is expected to generate annual sales of $928,000 and costs of $721,000. The tax rate is 35 percent and the required rate of return is 14.6 percent. What is the net present value of the project?
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jeff jeffy answered 1 year agoRelated Solutions
Ausel’s is considering a ten-year project that will require $850,000 for new fixed assets that will...
Ausel’s is considering a ten-year project that will require
$850,000 for new fixed assets that will be depreciated
straight-line to a zero book value over the ten years. At the end
of the project, the fixed assets can be sold for 15 percent of
their original cost. The project is expected to generate annual
sales of $928,000 and costs of $721,000. The tax rate is 35 percent
and the required rate of return is 14.6 percent. What is the net...
XYZ is considering a five-year project that will require $738,000 for new fixed assets that will...
XYZ
is considering a five-year project that will require $738,000 for
new fixed assets that will be depreciated straight-line to a zero
book value over five years. No bonus depreciation will be taken. At
the end of the project, the fixed assets can be sold for 18 percent
of their original cost. The project is expected to generate annual
sales of $679,000 with costs of $321,000. The tax rate is 22
percent and the required rate of return is 15.2...
Ivy is considering a new project. The project will require $2,000,000 for new fixed assets. There...
Ivy is considering a new project. The project will require
$2,000,000 for new fixed assets. There is a total of 75,000combjned
increase in inventories and account receivables which is partly
financed by 25,000 increase is accounts payables. The project has a
6 yr life span. The fixed assets will be depreciated using 7 year
MACRS to zero book value over the life of the project. At the end
of the project, the fixed assets can be sold for 10% of...
considering a new project will require $800,000 for new fixed assets. There is a total of...
considering a new project will require $800,000 for new fixed
assets. There is a total of $6,000 combined increase in inventories
and account receivables and $2,000 increase in account payables.
The project has a 6-year life. The fixed assets will be depreciated
using 5-year MACRS to a zero book value over the life of the
project. At the end of the project, the fixed assets can be sold
for 4 percent of their original cost. The net working capital
returns...
TechSquare. LLC. is considering a 5-year new project. The project will require $325,000 for fixed assets...
TechSquare. LLC. is considering a 5-year new project. The
project will require $325,000 for fixed assets and $95 of working
capital. The fixed assets will be depreciated straight-line to a
zero-book value over 5 year. At the end of the project, the fixed
assets can be sold for 25% of their original cost. The project is
expected to generate annual sales of $554,000 with costs of
$430,000. The tax rate is 21% and the required rate of return is
15%....
TechSquare. LLC. is considering a 5-year new project. The project will require $325,000 for fixed assets...
TechSquare. LLC. is considering a 5-year new project. The
project will require $325,000 for fixed assets and $95,000 of
working capital. The fixed assets will be depreciated straight-line
to a zero-book value over 5 year. At the end of the project, the
fixed assets can be sold for 25% of their original cost. The
project is expected to generate annual sales of $554,000 with costs
of $430,000. The tax rate is 21% and the required rate of return is
15%....
TechSquare. LLC. is considering a 5-year new project. The project will require $325,000 for fixed assets...
TechSquare. LLC. is considering a 5-year new project. The
project will require $325,000 for fixed assets and $95000 of
working capital. The fixed assets will be depreciated straight-line
to a zero-book value over 5 year. At the end of the project, the
fixed assets can be sold for 25% of their original cost. The
project is expected to generate annual sales of $554,000 with costs
of $430,000. The tax rate is 21% and the required rate of return is
15%....
Margarite’s Enterprises is considering a new project. The project will require $200,000 for new fixed assets...
Margarite’s Enterprises is considering a new project. The
project will require $200,000 for new fixed assets and $15,000 for
additional investments in net working capital. The project has a
3-year life. The fixed assets will be depreciated using 3-year
MACRS to a zero book value over the life of the project. At the end
of the project, the fixed assets can be sold for 5 percent of their
original cost. The net working capital returns to its original
level at...
Dysound Inc. is considering a new project. The project will require $325,000 for new fixed assets,...
Dysound Inc. is considering a new project. The project will
require $325,000 for new fixed assets, $95,000 for additional
inventory and accounts receivable (working capital). The project
has a 5-year life. The fixed assets belong to a 30% CCA class. At
the end of the project there is no salvage cost. The net working
capital returns to its original level at the end of the project.
The project is expected to generate annual sales of $554,000 and
costs of $430,000....
Dysound Inc. is considering a new project. The project will require $325,000 for new fixed assets,...
Dysound Inc. is considering a new project. The project will
require $325,000 for new fixed assets, $95,000 for additional
inventory and accounts receivable (working capital). The project
has a 5-year life. The fixed assets belong to a 30% CCA class. At
the end of the project there is no salvage cost. The net working
capital returns to its original level at the end of the project.
The project is expected to generate annual sales of $554,000 and
costs of $430,000....
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