Calculating nominal cash flow etonic, inc., is considering an investment of $395,000 in an asset with an economic life of five years. the firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $255,000 and $82,000, respectively. both revenues and expenses will grow thereafter at the annual inflation rate of 3 percent. the company will use the straight-line method to depreciate its asset to zero over five years. the salvage value of the asset is estimated to be $45,000 in nominal terms at that time. the one-time net working capital investment of $15,000 is required immediately and will be recovered at the end of the project. the corporate tax rate is 34 percent. what is the project’s total nominal cash flow from assets for each year?
Answers: 2
Business, 22.06.2019 11:30
Marta communications, inc. has provided incomplete financial statements for the month ended march 31. the controller has asked you to calculate the missing amounts in the incomplete financial statements. use the information included in the excel simulation and the excel functions described below to complete the task
Answers: 1
Business, 22.06.2019 11:50
After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?
Answers: 1
Business, 22.06.2019 21:00
Adecision is made at the margin when each alternative considers
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Business, 22.06.2019 23:40
John has been working as a tutor for $300 a semester. when the university raises the price it pays tutors to $400, jasmine enters the market and begins tutoring as well. how much does producer surplus rise as a result of this price increase?
Answers: 1
Calculating nominal cash flow etonic, inc., is considering an investment of $395,000 in an asset wit...
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