06 Feb

A proposed new investment has projected sales of $840000

by jagguarpaw On: Finance - 0 Comment

Question: A proposed new investment has projected sales…

1）A proposed new investment has projected sales of $840,000. Variable costs are 55 percent of sales, and fixed costs are $173,000; depreciation is $74,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net income?

Sales $

Variable costs

Fixed costs

Depreciation

EBT $

Taxes Net income $

2）

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.73 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,090,000 in annual sales, with costs of $785,000. The project requires an initial investment in net working capital of $310,000, and the fixed asset will have a market value of $215,000 at the end of the project. If the tax rate is 30 percent, what is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567. Negative amounts should be indicated by a minus sign.)

Years	Cash Flow
Year 0	$
Year 1	$
Year 2	$
Year 3	$

If the required return is 13 percent, what is the project’s NPV? 3） Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $244,000, has a four-year life, and requires $76,000 in pretax annual operating costs. System B costs $342,000, has a six-year life, and requires $70,000 in pretax annual operating costs. Suppose LISC always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 35 percent and the discount rate is 10 percent. Calculate the EAC for both conveyor belt systems. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EAC   System A $   System B $

Tags: A proposed new investment has projected, A proposed new investment has projected sales, A proposed new investment has projected sales of $840000, proposed new investment has projected sales of $840000 Share

Trackbacks and pingbacks

1. canadian mail order pharmacies
   canadian mail order pharmacies A proposed new investment has projected sales of $840000 - Wise American
2. cheap cialis online overnight shipping
   cheap cialis online overnight shipping A proposed new investment has projected sales of $840000 - Wise American
3. essay writers online cheap
   essay writers online cheap A proposed new investment has projected sales of $840000 - Wise American
4. uk dissertation help
   uk dissertation help A proposed new investment has projected sales of $840000 - Wise American
5. thesisacloud.com
   thesisacloud.com A proposed new investment has projected sales of $840000 - Wise American
6. Devops Companies
   ... [Trackback] [...] Read More to that Topic: wiseamerican.us/proposed-new-investment-projected-sales-840000/ [...]
7. Eliana
   ... [Trackback] [...] Read More to that Topic: wiseamerican.us/proposed-new-investment-projected-sales-840000/ [...]
8. cialis dapoxetine australia
   cialis dapoxetine australia A proposed new investment has projected sales of $840000 - Wise American
9. cialis black 800mg
   cialis black 800mg A proposed new investment has projected sales of $840000 - Wise American
10. cialis purchase online canada
    cialis purchase online canada A proposed new investment has projected sales of $840000 - Wise American
11. does cialis increase ejaculation
    does cialis increase ejaculation A proposed new investment has projected sales of $840000 - Wise American
12. viagra
    viagra A proposed new investment has projected sales of $840000 - Wise American
13. canada drugs online pharmacy
    canada drugs online pharmacy A proposed new investment has projected sales of $840000 - Wise American
14. canadian drugs online pharmacy
    canadian drugs online pharmacy A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
15. over the counter viagra
    over the counter viagra A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
16. liquid cialis
    liquid cialis A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
17. cialis 20 mg
    cialis 20 mg A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
18. thesis writing services uk
    thesis writing services uk A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
19. write my economics paper
    write my economics paper A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
20. writing a thesis outline
    writing a thesis outline A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
21. best essay writing service
    best essay writing service A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
22. help write essay online
    help write essay online A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
23. dissertation coaching services
    dissertation coaching services A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
24. https://customessaywriterbyz.com/
    https://customessaywriterbyz.com/ A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
25. researchpaperssfk.com
    researchpaperssfk.com A proposed new investment has projected sales of $840000 - Core Recruiters Ltd
26. definition essay help
    definition essay help A proposed new investment has projected sales of $840000 - Core Recruiters Ltd