A service company purchases a fleet of trucks for house calls at a cost value of $1 million. At the end of 3 years, the company sells the truck fleet for $612,000. Assuming the company’s gross income is $1.5 million annually with expenses of $1.1 million determine the after-tax cash flows for the 3 years the company owned the fleet. Assume a corporate tax rate of 21% and use the appropriate MACRS depreciation for the truck. Assume that depreciation recapture and depreciation loss is subject to the same 21% tax rate and ignore sales tax for purchasing and selling the truck.

Please show all work

A company sells Widgets to consumers at a price of $83 per unit. The cost to produce Widgets is $30 per unit. The company will sell 15,000 Widgets to consumers each year. The fixed costs incurred each year will be $220,000. There is an initial investment to produce the goods of $2,700,000 which will be depreciated straight line over the 17 year life of the investment to a salvage value of $0. The opportunity cost of capital is 13% and the tax rate is 37%. Operating cash flow is $421,014.71. NPV is $133047.13.

What is the NPV of the project if inventories must be increased at the start of the project (year 0) by $400,000 and will be recovered at the end (year 17). Answer is -216,865.71. Please show details calculation how to get the answer is -216,865.71. Dont use the excel!!!! Thank you !!!!

3 If a researcher is using data that are low in cost and save time, which type of data is this likely to be?

Show an example of a decreasing cost industry in the long run between a firm and the market. Assume the firm is at zero profit in the initial equilibrium, followed by an increase in market demand. Assume the firm is at zero profit in the initial equilibrium, followed by an increase in market demand.

The company, produce in-house in the US; The cost of equipment totals into 32.5 million at the start of the first year. Which will have a salvage value of 3 million at the end of 6 years. After a recent area 51 raid, the company acquired a team of Area 51 aliens with an annual demand of 500,000. The operational costs and software maintenance is 700,000 annually. As the years go by, an inflation of 16% will demand increasing prices for these values. What will be the net present worth?

Sam is considering purchase of a vending machine to sell sodas. The cost of the vending machine is $3,400. Sam estimates that the vending machine will last for five years and will provide net income of $800 each year for its lifetime.
a. If Sam pays $3,400 for the vending machine today, what is its net present value at 7%? Should Sam purchase the vending machine?
b. If Sam pays $3,400 for the vending machine today, what is its net present value at 5%? Should Sam purchase the vending machine?
c. Suppose the seller of the vending machine allows Sam to defer, without penalty or interest, payment for the vending machine until the end of the first year. What is its net present value at 7%? Should Sam purchase the vending machine?

Discuss the purpose of a budget and cost variance analysis. Why is it important for companies to create a budget then determine if they met budgeted costs? For example, is it always a negative variance if a company exceeds budgets? Give me an example of why a cost falling below expectations (actual cost below budgeted cost) may still be a problem even if it appears to increase profit.

1) Suppose the cost of basket is P_eu = 300 euros in the Eurozone and P_Turkey =800 liras in Turkey. Suppose the home country is Turkey, and the exchange rate is 1.8 liras per euro.

a) Write the absolute purchasing power parity (PPP) equation. Check to see whether PPP holds for the lira-euro exchange rate.

b) Calculate the real exchange rate. Determine whether lira is over-valued, under-valued or neither.

c) Write two reasons for why the tendency for PPP to hold is weak in the short-run.لا

Evaluate the following: The rise in the relative cost of education and health care is evidence of the inefficiency of these sectors of our economy.

1. The process for the cost of debt assumes the times interest earned is a good proxy for measuring credit risk, what other financial variable if any should be considered? Does this assumption limit the results? ( each time the level of debt changes. Will this occur and does this limit the applicability of your results?
2. The base level of interest rates, the risk free rate, changes over time. Is this important in calculating the optimal level. Since the estimate is based on the current environment does it matter if this changes?
3. The beta may change over time, does keeping it constant limit your results or is that an acceptable assumption?