Answer:
Explanation:
South Tel Communications is considering the purchase of a new software management system. The system is called B-image, and it is expected to drastically reduce the amount of time that company technicians spend installing new software. South Tel's technicians currently spend 6,000 hours per year on installation which cost South Tel $25 per hour. The owners of the B-image system claim that their software can reduce time on task by at least 25%. The system requires an initial investment of $55,000 and an additional investment of$10,000 for technician training on the new system. Annual upgrades will cost the firm $15,000 per year. Because the investment is comprised of software, it can be fully expensed in the year of the expenditure (no depreciation). South Tel faces a 30% tax rate and uses a 9% cost of capital to evaluate projects of this type.
A. Assuming that South Tel has sufficient taxable income from other projects so that it can immediately expense the cost of the software, what are the free cash flows for the project for years zero through five?
Total (65,000)
Cash flow year 1 - 5
Saving on installations per year 450,000
Less: Annual upgrades ( 15,000)
Total 435,000
Less: Tax (30%) (130,500);
Total project free cash flow 304,500.answer
Answer:
90
Explanation:
In 5 shelves put 6 in each. In 4 shelves put 15 in each. Add both numbers and get your answer
Answer:
a. is now lower than it was before, and so Hydro Grow is less likely to build the building.
Explanation:
The interest rate increase will reduce the net present value of the project as the lenders of fund will demand more interest and since the Weighted Average Cost of Capital of the project will increase. The increased WACC will cause the project to be more riskier and since the future benefit of the project will be reduced.
The first three steps of the strategic management process involve <u>planning</u> strategies.
Strategic planning is a system in which an agency's leaders outline their imaginative and prescient destiny and become aware of their agency's desires and goals. The method consists of setting up the sequence in which the goals should be realized in order that the business enterprise can reach its stated vision.
Inside making plans, there are 4 important categories: strategic, tactical, operational, and contingency planning. Strategic planning is a manner that groups use to determine their dreams and targets.
Strategic planning is an agency's procedure of defining its approach or direction and making selections on allocating its assets to achieve strategic goals. it is able to also extend to govern mechanisms for guiding the implementation of the strategy.
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