Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 401 Weeks Ago, 2 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 27 Sep 2017 My Price 5.00

existing equipment

Question #2

A firm believes it can generate an additional $400,000 per year in revenues for the next 5 years if it replaces existing equipment that is no longer usable with new equipment that costs $350,000.

 

 

The existing equipment is fully depreciated and has a market value of $3,000.

 

The firm expects to be able to sell the new equipment when it is finished using it (after 5 years) for $5,000.

 

Variable costs are expected to total 65% of revenue.

 

The additional sales will require an initial investment in net working capital of $40,000, which is expected to be recovered at the end of the project (after 5 years).

 

Assume the firm uses straight line depreciation, its marginal tax rate is 30%, and the discount rate for the project is 12%.

 

a) How much value will this new equipment create for the firm?

 

b) At what discount rate will this project break even?

Answers

Maurice Tutor
(5)
Status NEW Posted 27 Sep 2017 12:09 AM My Price 5.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)