Finance

Mideque, Inc., is considering a project to produce pens. It is estimated that the initial cost of the equipment, including transportation, installation, and so forth, will be $ 22,692. Mideque also estimates that the revenues (sales) each year over the five-year life of the project will be $14,893. The other yearly expenses (e.g., cost of goods sold, wages and salaries, etc.), will be $6,420. Mideque will finance $9,805 by loan with an interest rate of 13 percent per year. The loan will be repaid at the rate of $1,836 per year plus interest on the remaining balance each year. Mideque uses straight-line depreciation, and the equipment will have no salvage value at the end of its life. Assume a corporate-profits tax rate of 48 percent. Obtain the initial investment.

 

 

 

 

 

 

 

 

Mideque, Inc., is considering a project to produce pens. It is estimated that the initial cost of the equipment, including transportation, installation, and so forth, will be $ 24,022. Mideque also estimates that the revenues (sales) each year over the five-year life of the project will be $11,018. The other yearly expenses (e.g., cost of goods sold, wages and salaries, etc.), will be $5,514. Mideque will finance $9,399 by loan with an interest rate of 12 percent per year. The loan will be repaid at the rate of $2,419 per year plus interest on the remaining balance each year. Mideque uses straight-line depreciation, and the equipment will have no salvage value at the end of its life. Assume a corporate-profits tax rate of 44 percent. Obtain the annual cash flow.

Round your final answer to 2 decimal places.

 

 

 

 

 

 

Mideque, Inc., is considering a project to produce pens. It is estimated that the initial cost of the equipment, including transportation, installation, and so forth, will be $ 24,448. Mideque also estimates that the revenues (sales) each year over the five-year life of the project will be $15,970. The other yearly expenses (e.g., cost of goods sold, wages and salaries, etc.), will be $6,352. Mideque will finance $9,256 by loan with an interest rate of 13 percent per year. The loan will be repaid at the rate of $2,113 per year plus interest on the remaining balance each year. Mideque uses straight-line depreciation, and at the end of the life of this project the equipment can be sold for $4,382. Assume a corporate-profits tax rate of 47 percent. Assume that the working capital requirement will be $1,164 and that the IRS allows an investment tax credit of 10 percent for this kind of project. Compute the initial investment.

Round your final answer to 2 decimal places.

 

 

 

 

 

 

 

Mideque, Inc., is considering a project to produce pens. It is estimated that the initial cost of the equipment, including transportation, installation, and so forth, will be $ 23,072. Mideque also estimates that the revenues (sales) each year over the five-year life of the project will be $14,866. The other yearly expenses (e.g., cost of goods sold, wages and salaries, etc.), will be $6,547. Mideque will finance $9,9010 by loan with an interest rate of 13 percent per year. The loan will be repaid at the rate of $2,425 per year plus interest on the remaining balance each year. Mideque uses straight-line depreciation, and at the end of the life of this project the equipment can be sold for $4,002. Assume a corporate-profits tax rate of 48 percent. Assume that the working capital requirement will be $1,302 and that the IRS allows an investment tax credit of 8 percent for this kind of project. Obtain the annual cash flow of the last period.

Round your final answer to 2 decimal places.

Mideque, Inc., is considering a project to produce pens. Assume that this is a replacement project. The old equipment can be sold for $10,760 as of today. It was bought five years ago for $21,715 and is assumed to last for five more years with no salvage value at the end of its life. The initial cost of the new equipment, including transportation, installation, and so forth, will be $ 24,447. Mideque also estimates that this new equipment will save the company $2,811 per year in operating costs and increase the revenues (sales) by $1,127 per year over the five-year life of the project. Mideque will finance $9,170 by loan with an interest rate of 15 percent per year. The loan will be repaid at the rate of $1,971 per year plus interest on the remaining balance each year. Mideque uses straight-line depreciation, and the new equipment will have no salvage value at the end of its 5-year life. Assume a corporate-profits tax rate of 57 percent a capital-gain tax rate of 42 percent. Compute the initial investment.

Round your final answer to 2 decimal places.

 

Mideque, Inc., is considering a project to produce pens. Assume that this is a replacement project. The old equipment can be sold for $10,578 as of today. It was bought five years ago for $22,951 and is assumed to last for five more years with no salvage value at the end of its life. The initial cost of the new equipment, including transportation, installation, and so forth, is estimated to be $ 24,281. Mideque also estimates that this new equipment will save the company $2,837 per year in operating costs and increase the revenues (sales) by $946 per year over the five-year life of the project. Mideque will finance $9,306 by loan with an interest rate of 13 percent per year. The loan will be repaid at the rate of $2,408 per year plus interest on the remaining balance each year. Mideque uses straight-line depreciation, and the new equipment will have no salvage value at the end of its 5-year life. Assume a corporate-profits tax rate of 48 percent a capital-gain tax rate of 47 percent. Also, assume that the working capital requirement will be $1,055. Obtain the annual cash inflow of the last period.

Round your final answer to 2 decimal places.

 

 
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