Business, 19.04.2021 15:40 natalie2sheffield

You got asked to analyze a 5-year project for your firm. The project produces an annual revenue of $28,500, but requires an annual labor and materials cost of $5,000. To initiate the project your firm must invest $20,000. The salvage value of the project is $0 at the end of the 5-year useful life. Required:
Use straight line depreciation and a 40% income tax rate to compute the:

a. after-tax cash flows
b. the IRR for the ATCF of this project.

Answers: 2

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Answer from: johnsnow69

= 15700

73.5%

Explanation:

Cash flow = (revenue - cost - depreciation) (1 - tax rate) + depreciation = 15700

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

20,000 / 5 = 4,000

($28,500 - $5000 - $4000) x (1-0.4) + 4000 = $15700

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 = -20,000

Cash flow each year from year 1 to 5 = 15,700

IRR = 73.5%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

Answer from: Quest

My first question is what benefits do you expect to achieve from career exploration? the benefits that i expect to achieve from career exploration. for me i think the benefits of exploring many different careers are that you get exposed to more, so it's easier for you to pick which one you like best. another benefit is that you get a more first hand view of what jobs are more likely to be needed in the future and that can be factored into your consideration. my second question is what do you expect to be the most challenging parts of your career planning process? why? the most challenging parts of my career planning process is trying to get things in order and trying to write this paragraph it is confusing and, hard work. and last but not least my third question is i think the most challenging part is taking the first step and really deciding on a career you want to pursue; there are so many options and it can be hard to choose.which jobs will allow me to make a living? ; what skills does emergency medical technician emergency medical services medical » physiology require?

Answer from: Quest

Nucleus

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You got asked to analyze a 5-year project for your firm. The project produces an annual revenue of $...