__________ plan and design all types of buildings and structures.

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.18 mill

andre [41]

Answer:

See the explanation below

Explanation:

1. If the tax rate is 24 percent, what is the project’s Year 0 net cash flow?

A. Year 1.

B. Year 2.

C. Year 3

Year 0 cash flow = - initial fixed asset investment - initial investment in net working capital = $2,180,000 + $290,000 = $2,470,000

Annual depreciation expenses = 2,470,000 / 3 = $823,333

A. Year 1 cash flow = (Sales - costs - depreciation)(1 - tax) + depreciation = (1,730,000 - 636,000 - 823,333)(1 - 0.24) + 823,333 = $1,029,039.92

B. Year 2 cash flow = $1,029,039.92

C. Non operating year 3 cash flow = Market value + Net working capital - tax(market value - book value) = 240,000 + 290,000 - 0.24(240,000 - 0) = $472,400

Year 3 cash flow = $472,400 + $1,029,039.92 = $1,501,439.92

2. If the required return is 12 percent, what is the project's NPV?

NPV = -2,470,000 + (1,029,039.92 / (1 + 0.12)^1 + 1,029,039.92 / (1 + 0.12)^2 + 1,501,439.92 / (1 + 0.12)^3 = $337,825.25

5 0

4 years ago

Which of the following collect and evaluate career outlook information:

Digiron [165]

Don’t fall for the links love!

4 0

3 years ago

Read 2 more answers

The area of a project site that is used by the building structure, defined by the perimeter of the building plan is the:

Gekata [30.6K]

Answer: "building footprint" .
_____________________________________

6 0

4 years ago

The Kentucky government approves tax incentives to encourage more industry to move to the state. Which of the following statemen

AVprozaik [17]

Answer:

a

Explanation:

A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.

A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.

Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible

5 0

4 years ago

Dr. Lum teaches part-time at two different community colleges, Hilltop College and Serra College. Dr. Lum can teach up to 5 clas

Scrat [10]

Answer:

2 classes at Hilltop, 3 classes at Serra; and $20,600

Explanation:

We can generate two equations from the problem

Equation 1: Dr. Lum can teach up to 5 classes per semester at both colleges. If 'h' represents the number of classes taken at Hilltop College, and 's', the number of classes taken at Serra College,

Equation 1 becomes: h + s = 5

Equation 2: Dr. Lum spends 3 hours per week preparing for Hilltop classes, and 4 hours for Serra classes, subject to a maximum of 18 hours per week.

Equation 2 becomes: 3h + 4s = 18

Now solving using substitution method,

We can derive an equation 3 from equation 1, as follows.

Equation 3: h = 5 - s.

Substituting equation 3 into equation 2, equation 2 becomes

3(5 - s) + 4s = 18

= 15 - 3s + 4s = 18

= 15 + s = 18

= s = 3.

With s = 3, using equation 3, h = 5 - 3 = 2.

Therefore, Dr. Lum should teach 2 classes at Hilltop, and 3 classes at Serra.

His income will be

$4,000 (2) + $4,200 (3)

= $20,600.

3 0

3 years ago