Question

please answer all questions and post answers clearly for each part.

Cody Jackson plans importing olives to sell to restaurants and specialty stores. This venture will require an initial outlay of $537,800 to buy a refrigerated storage unit, which can be depreciated (straight-line) to a salvage value of $140,000 in 15 years. In addition, she will need $80,000 in working capital during the 15 years of the project. Annual sales are estimated to be $250,000 and annual expenses $150,000. She also estimates that the marginal tax rate and RRR will be 28% and 8%, respectively, during the lifetime of project. Using the given information, answer the following questions
a. What is the depreciation amount each year?
b. What is the net cash flow associated with the venture at year 1?
c. What is the amount of tax payment at year 8?
d. What is the net present value (NPV) of the proposed project?
e. What is the IRR of the project?
f. Should the company accept the project? Justify your answer by using the IRR of the project.
g. Calculate the net present values of the project (NPV) at the different RRR. The RRR starts from 0% and increases by 2% until 20%. Paste to the “answer” sheet only the NPV at 10%.
h. Using the answers in the question g, draw a chart that shows the NPV of the project at different levels of cost of capital. Don’t forget to give appropriate title and labels of X and Y on the chart

Answer 1

Depreciation per year	(cost of machine-salvage value)/life of project	(537800-140000)/15	26520
Year	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
Initial Investment	-537800
investment in working capital	-80000
annual sales		250000	250000	250000	250000	250000	250000	250000	250000	250000	250000	250000	250000	250000	250000	250000
annual expense		150000	150000	150000	150000	150000	150000	150000	150000	150000	150000	150000	150000	150000	150000	150000
annual depreciation		26250	26250	26250	26250	26250	26250	26250	26250	26250	26250	26250	26250	26250	26250	26250
operating profit		73750	73750	73750	73750	73750	73750	73750	73750	73750	73750	73750	73750	73750	73750	73750
less tax-28%		20650	20650	20650	20650	20650	20650	20650	20650	20650	20650	20650	20650	20650	20650	20650
after tax profit		53100	53100	53100	53100	53100	53100	53100	53100	53100	53100	53100	53100	53100	53100	53100
add depreciation		26250	26250	26250	26250	26250	26250	26250	26250	26250	26250	26250	26250	26250	26250	26250
scrap value of machine																140000
recovery of working capital																80000
net operating cash flow	-617800	79350	79350	79350	79350	79350	79350	79350	79350	79350	79350	79350	79350	79350	79350	246250
net present value =Using NPV function in MS excel	NPV(8%,H1210:V1210)+G1210	$114,008
IRR =Using IRR function in MS excel	IRR(G1210:V1210)	10.67%
A-	Depreciation amount each year		26520						jeff jeffy Next > < Previous Related Solutions Please answer all the questions clearly and accurately with high charting the tables on the subject... Please answer all the questions clearly and accurately with high charting the tables on the subject I want the answer to be written on the computer and not handwritten, please The following information has been obtained from the records of AJ Corporation Ltd for the period from January 1 to June 30, 2013. Prepare a Cost Sheet. PARTICULARS 1. 1.2013 $ 30.6.2013 $ Cost of Raw Materials 10,000 7,500 Cost of Work in Progress 5,000 6,000 Cost of Stocks of... Please answer all the questions clearly and accurately with high charting the tables on the subject... Please answer all the questions clearly and accurately with high charting the tables on the subject I want the answer to be written on the computer and not handwritten, please Explain the difference between Financial Accounting and Cost Accouning Answer true or false to the following questions please explain your answers and answer all please  ... Answer true or false to the following questions please explain your answers and answer all please   1.The cytoplasmatic side of the integral membrane proteins is often glycosylated. 2. Cholesterol is more enriched at the outer leaflet of the plasma membrana 3.Inner leaflet of the plasma membrane is enriched with glycolipids. 4.Membrane proteins that pomp ions in and out of the cell have specific Km values. 5. A symport would function as an antiport if its orientation in the membrane were... Please answer the following questions. Post your answers to the Discussions area of the course. What... Please answer the following questions. Post your answers to the Discussions area of the course. What factors affect taxable income or the difference between gross and taxable income? What are the primary types of taxable income, as defined by the IRS? In addition to random selections, what are the four most common signals the IRS look for when selecting taxpayers for audits? What are the five general tax reduction strategies? Give a brief synopsis of each. Production and Costs Homework #5 Please answer all questions and each part The following information that... Production and Costs Homework #5 Please answer all questions and each part The following information that apply to Lisa’s Cupcake Shoppe should be used to answer the questions. Quantity of Labor (workers) Quantity of cupcakes (TPP) MPP TVC TFC TC MC AVC AFC ATC 0 0 1 110 2 200 3 270 4 300 5 320 6 330 Lisa’s Cupcake Shoppe is a small shop that sells cupcakes in a university town. Lisa owns three mixers.  Her other inputs are ovens,... ANSWER ALL 11 QUESTIONS PLEASE DON'T !!! ANSWER IF YOU DON'T KNOW ALL THE ANSWERS THANK... ANSWER ALL 11 QUESTIONS PLEASE DON'T !!! ANSWER IF YOU DON'T KNOW ALL THE ANSWERS THANK YOU. 1. What things affect airflow and which one is the most important? 2. Explain how an asthma attack could create a life-threatening condition? 3. Explain how emphysema is associated with expiratory flow limitation and its consequence on the person’s health 4. What are the muscles of inspiration? 5. What role do these muscles perform? 6. What are the primary sources of resistance for... please can answer all the questions and with work clearly 1. According to the Joslin Clinic,... please can answer all the questions and with work clearly 1. According to the Joslin Clinic, healthy individuals without diabetes should have a blood glucose level of no more than 100 mg dL−1 after awaking, before breakfast. What is the molarity of glucose in the blood of a healthy individual whose blood glucose level is 100 mg dL−1 ? 2. One index of toxicity is the LD50, the amount of substance which, when administered to a group of subject, will... Please answer the below questions ( I need answers for all the below questions). Thank you... Please answer the below questions ( I need answers for all the below questions). Thank you True or False Write true if the statement is true or false if the statement is false. _______ The heart consists mainly of muscle. _______ Blood pressure is highest in veins. _______ Atherosclerosis is the buildup of plaque inside arteries. _______ Platelets are blood cells that fight infections. _______ Peripheral gas exchange takes place in the lungs. _______ Food travels from the mouth to... Please follow the directions and answer all questions properly. Type the answers please. NO hand written... Please follow the directions and answer all questions properly. Type the answers please. NO hand written answer. This is a Marketing class. Thanks Please write no more than 100 words for each question. The questions are about fast food chain “Chick-Fil-A. These questions were asked by my professor. Please make sure that answers are good. I would really appreciate. Thanks again. I’m having a hard time understanding differences among needs, wants and demands of “Chick-Fil-A” customers. How would you explain... have been posting the same questions and not getting an answers for so please answer all... have been posting the same questions and not getting an answers for so please answer all the questions : ACLS q’s The cardiac arrest rhythm associated with NO discernible electrical activity on the ECG is termed as _________?   Pulseless electrical activity   Ventricular tachycardia   Bradycardia   Asystole Bradycardia is defined as any rhythm disorder with a heart rate less than:   40 beats per minute   50 beats per minute   70 beats per minute   60 beats per minute Indications for transcutaneous pacing (TCP) include... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions You must evaluate a proposal to buy a new milling machine. The base price is $175,000,... “Triangle Guessing” game in Python The program accepts the lengths of three (3) sides of a... THIS PROGRAM HAS TO BE WRITTEN IN C Single function to perform the parity computation on... Consider a buffer system consisting of Benzoic acid (pKa = 4.20) and sodium benzoate, a) Would... Decision Variables S T Minimize 1.8S + 2.20T Subject to: Potassium 5S + 8T >= 200... A neurologist needs to counsel a stroke victim and her husband about possible outcomes, treatment options,... Case Study: Personal Beliefs in the Workplace Don Shakow was a prominent professional who worked in... ADVERTISEMENT About @ 2020 WizEdu