1 answer

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $195,000 and...

Question:

Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $195,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $132,000, variable costs of $35,500, and fixed costs of $12,850. The project will also require net working capital of $3,450 that will be returned at the end of the project. The company has a tax rate of 35 percent and the project's required return is 12 percent. What is the net present value of this project?


Answers

NPV FIXED ASSESTS WORKING CAPITAL year OCF -195,000.00 -3,450.00 disou cnt FCF rate discounted 12% value -198,450.00 1.00 -19

257 258 calculation of net profit year TAX OCF 259 260 261 net profit before dep 1 83,650.00 2 83,650.00 3 83,650.00 4 83,650

237 NPV 238 WORKING CAPITAL year FIXED ASSESTS OCF 239 240 0 -195000 - 3450 disoucnt FCF rate 0.12 =+B240+D240+C240 1 =+B241+

B 258 calculation of net profit year TAX OCF 259 260 1 261 2 2623 263 4. 264 net profit before dep =132000-35500-12850 =13200In second year there is no tax value as theere is loss. the depreciation amount is more than the profit value.

please ask if any query

.

Similar Solved Questions

1 answer
Please provide steps that you did to solve ни 9.3.7 Use the value of the linear...
please provide steps that you did to solve ни 9.3.7 Use the value of the linear correlation coefficient to calculate the coeficient of determination. What does this tell you about the explained variation of the data about the regression line? About the unexplained r 0.582 Calculate the c...
1 answer
Suppose a gas-filled incandescent light bulb is manufactured to have atmospheric pressure in it at 20.0°C....
Suppose a gas-filled incandescent light bulb is manufactured to have atmospheric pressure in it at 20.0°C. Find the gauge pressure inside such a bulb when it is hot, assuming its average temperature is 68.5°C and neglecting any change in volume due to thermal expansion or gas leaks. atm...
1 answer
How do you find the vertex and the intercepts for #f(x)=x^2+7+6#?
How do you find the vertex and the intercepts for #f(x)=x^2+7+6#?...
1 answer
In an isometric exercise a person places a hand on a scale and pushes vertically downward,...
In an isometric exercise a person places a hand on a scale and pushes vertically downward, keeping the forearm horizontal. This is possible because the triceps muscle applies an upward force perpendicular to the arm, as the drawing indicates. The forearm weighs 24.0 N and has a center of gravity as ...
1 answer
How do i do this in basic java without using hashmat or anything complicated Two-Dimensional Arrays....
how do i do this in basic java without using hashmat or anything complicated Two-Dimensional Arrays. Write the three functions described below. Demonstrate that your code works by calling each function and printing out the results. All of your code should be in one file. Upload your java code and a ...
1 answer
With explanation please .5 What is the truth table of the following circuit? What is a...
with explanation please .5 What is the truth table of the following circuit? What is a simpler circuit which has the same truth table? .6 Design a circuit which has the truth table: Inputs Output 1 1 1 0 1 0 1 1 0 0 1 .7 Design a circuit which has the truth table: Inputs Output 1 1 1 7 o 0 0 1 0 0 ...
1 answer
Engineering Mechanics Dynamics Please read all. Especially the highlighted area. I still need a step by...
Engineering Mechanics Dynamics Please read all. Especially the highlighted area. I still need a step by step calculation. Of the problem. This is a final test question. Write a complete solution for one of the two problems below. Include figures, coordinate systems, and explanations using co...
1 answer
Integrate ve 2e22 (e22 da using U-substitution: 50 U = du dx Substitution gives du Integration...
Integrate ve 2e22 (e22 da using U-substitution: 50 U = du dx Substitution gives du Integration yields The final answer is...
1 answer
C- SOLVE & SHOW THE STEPS: (14 points- 7 pts each) Q# 1 Regulating lower SO,...
C- SOLVE & SHOW THE STEPS: (14 points- 7 pts each) Q# 1 Regulating lower SO, emissions: Acme and US Electric run coal-burning power plants. Each emits 40 tons of sulfur dioxide per month, total emissions = 80 tons/month. Goal: Reduce SO, emissions 25%, to 60 tons/month Cost of reducing emissions...
1 answer
The work done by an external force to move a particle of charge -2.20 μC at...
The work done by an external force to move a particle of charge -2.20 μC at constant speed from point A to point B is 6.40x10−310−3 J. (a) What is the difference between the electric potential energy of the charge at the two points? (b) What is the difference in the kinetic energy of ...
1 answer
What are the 5 sub-roles of a APHN
What are the 5 sub-roles of a APHN...
1 answer
Are my proton labelled correctly for camphor? from right to left: Hi singlet, Hj singlet, Hh sin...
are my proton labelled correctly for camphor? from right to left: Hi singlet, Hj singlet, Hh singlet, Hb multiplet, Hf doublet of doublet**, Hb doublet of doublet, He multiplet, Hc pentet, Ha doublet of doublet. what is the longer middle peak between Hf and Hb? is that a peak for borneol? im tryi...
1 answer
(a) Based on the information contained in these financial statements, determine the following values for each...
(a) Based on the information contained in these financial statements, determine the following values for each company. (Round all percentages to 1 decimal place, e.g. 17.5%.) (1) Profit margin for 2016. (For VF, use “Net Sales.”) Profit margin Columbia Sportswear Company ent...
1 answer
At the beginning of the year, Swaim Company estimated annual overhead costs to be $600,000 and...
At the beginning of the year, Swaim Company estimated annual overhead costs to be $600,000 and machine hours to be used at 200,000. Swaim uses machine X hours as the base. Actual machine hours totaled 180,000 during the year. How much overhead did the company apply during the year? Selected Answer: ...
1 answer
Consider the compound whose formula is shown below. C2H40 1) Calculate the total number of valence...
Consider the compound whose formula is shown below. C2H40 1) Calculate the total number of valence electrons. 2) Calculate the number of bonds in the molecule. 3) Draw all possible skeleton structures representing all possible isomers. Cyclic isomers are allowed. 4) For each skeleton structure, comp...
1 answer
6. Four electrons are moving at the same velocity with respect to a magnetic field, but...
6. Four electrons are moving at the same velocity with respect to a magnetic field, but they are moving at different angles relative to the direction of the magnetic field. Upon which electron does the magnetic field exert the least force? (A)0° (B) 30 (C) 60 (D) 90 06 N oppo site the 7. An elec...
1 answer
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The...
Amber Mining and Milling, Inc., contracted with Truax Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2016. Amber paid for the lathe by issuing a $720,000, three-year note that specified 4% interest, payable annually on December 31 of ea...
1 answer
How would earth move if the sun including its gravity suddenly disappeared
How would earth move if the sun including its gravity suddenly disappeared? Explain your answer....
1 answer
Which of these acids has more equivalence points in its titration curve? #"H"_2"SO"_4# or #"H"_3"PO"_4#? How can you tell which one is the weaker acid?
Which of these acids has more equivalence points in its titration curve? #"H"_2"SO"_4# or #"H"_3"PO"_4#? How can you tell which one is the weaker acid?...