Business, 13.12.2021 18:20 moisesnunez408

As a Financial analyst, you must evaluate a proposed project to produce printer cartridges. The equipment would cost $55,000, plus 10,000 for installation. Annual sales would be 4,000 units at a price of $50 per cartridge, and the projects life would be 3 years. Current assets would increase by $5,000 and Payables by $3,000. At the end of 3 years, the equipment could be sold for $10,000. Depreciation would be based on the MACRS 3 year class; so the applicable rates would be 33%, 45%, 15%, and 7%. Variable cost would be 70% of sales revenue, fixed cost excluding depreciation would be $30,000 per year. The marginal tax rate is 40%. The corporate WACC is 11%.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:30, 7841784

Which of the following mechanisms would be most likely to motivate managers to act in the best interests of shareholders? a) decrease the use of restrictive covenants in bond agreements, b) take actions that reduce the possibility of a hostile takeover, c) elect a board of directors that allows managers greater freedom of action, d) increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries, e) eliminate a requirement that members of the board directors have a substantial investment in the firm's stocks

Answers: 2

continue

Business, 21.06.2019 22:20, arijade1391

Why should you not sign the tenant landlord agreement quickly and immediately

Answers: 1

continue

Business, 22.06.2019 13:40, vanessam16

Salge inc. bases its manufacturing overhead budget on budgeted direct labor-hours. the variable overhead rate is $8.10 per direct labor-hour. the company's budgeted fixed manufacturing overhead is $74,730 per month, which includes depreciation of $20,670. all other fixed manufacturing overhead costs represent current cash flows. the direct labor budget indicates that 5,300 direct labor-hours will be required in september. the company recomputes its predetermined overhead rate every month. the predetermined overhead rate for september should be:

Answers: 3

continue

Business, 22.06.2019 14:40, smithnakayla19

Increases in output and increases in the inflation rate have been linked to

Answers: 2

continue

You know the right answer?

As a Financial analyst, you must evaluate a proposed project to produce printer cartridges. The equi...