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Viktor [21]
3 years ago
13

H. Cochran Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,3

80,000. The fixed asset falls into the three-year MACRS class (MACRS schedule). The project is estimated to generate $1,805,000 in annual sales, with costs of $696,000. The project requires an initial investment in net working capital of $440,000, and the fixed asset will have a market value of $465,000 at the end of the project.
a. If the tax rate is 24 percent, what is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to two decimal places, e.g., 32.16.)

b. If the required return is 11 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16.)
Business
2 answers:
MArishka [77]3 years ago
7 0

Answer: If the required return is 11 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16.)

Explanation:

Zina [86]3 years ago
5 0

Answer:

The cash flows for the relevant years as follows:

Year 0=-$2380000

Year 1=$1,033,220.96  

Year 2=$1,096,738.40  

Year 3 =$1,763,160.64  

However,using a discount factor of 11% ,the present values  of each year cash flows are :

Cash flows (2,820,000.00)  1,033,220.96   1,096,738.40 1,763,160.64  

DF                 1                        1.11                    1.23                  1.37

DCF     (2,820,000.00)  930,829.69   890,137.49   1,289,207.86  

The net discounted cash flow by adding up the DCFs gives $ 290,175.05  

Explanation:

The detailed computation is found in the attached Excel file.

Download xlsx
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7 0
3 years ago
which stage in a work-unit activity analysis focuses on the product, information, or service provided?
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The stage in a work-unit activity analysis that focuses on the product, information, or service provided is the output phase, This is further explained below.

<h3>What is the output phase?</h3>

Generally, the output phase is simply defined as manufacturing or output in general.

In conclusion, The final deliverable is defined. The method of measuring the output is investigated.

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2 years ago
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The description according to another circumstance is summarized throughout the subsection below.

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A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate wheth
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Explanation:

1. The ceterus paribus effect gives us to what extent, the effect of a variable has on another variable, while holding all other factors fixed. Analysing job training of workers on productivity will give us results that are not biased since we will not be taking account of other factor variables in the calculations. When 2 firms are the same in almost every aspect apart from number of hours on training, then we will find out that each firm would have different levels of workers output. So we should know if workers output increases due to job training.

2. When it comes to provision of training, furms do these based on characteristics of the workers. Some of these characteristics are measurable while some are immeasurable

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Level of education,

immeasurable :

Skill set

Vision

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3. Apart from worker characteristics, productivity also depends on other factors one of which is technological change. A technological change can bring about increased efficiency and greater output by the worker. Different firms using different capital and technological combination are quite likely to have different output levels.

4. A positive correlation between job training and productivity cannot be used to ascertain if job training makes worker more efficient this is due to the fact that correlation only tells us if variables are in coexistence. So a positive correlation does not tell us that job training is indeed bringing about changes in the productivity of workers.

8 0
4 years ago
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