24 Jul WHAT ARE THE NET CASH FLOWS OF THE PROJECT FOR THE FOLLOWING YEARS?
Cochrane Inc. is considering a new three-year expansion project that requires an initial fixed ass Show more Cochrane Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $2250000. The fixed asset will be depreciated straight-line to zero over its three-year tax life after which time it will be worthless. The project is estimated to generate $2200000 in annual sales with costs of $1190000. The project requires an initial investment in net working capital of $155000 and the fixed asset will have a market value of $180000 at the end of the project. Assume that the tax rate is 40 percent and the required return on the project is 10 percent. Requirement 1: What are the net cash flows of the project for the following years? (Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Enter your answers in dollars not millions of dollars (e.g. 1234567).) Year Cash Flow 0 ? $ 1 ? 2 ? 3 Requirement 2: What is the NPV of the project? (Do not round intermediate calculations. Enter your answer in dollars not millions of dollars (e.g. 1234567). Round your answer to 2 decimal places (e.g. 32.16).) NPV ? $ Show less
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.