subject
Business, 16.04.2020 21:25 savannahvargas512

Blaze Scooters is considering expanding into a new college town and has the following operating data: Initial Investment in scooters (year 0): $100,000 Cost of securing permits (assume that permit cost is a tax-deductible expense in year 1): $10,000 Anticipated Revenue: $150,000 for years 1-5. Depreciation of scooters - straight line down to 0 over 5 years. Operating expenses (not including Depreciation): $75,000 per year. Tax Rate: 21%. Net Working Capital, consisting of cash, spare parts inventory, accounts receivable, and accounts payable: $30,000. Blaze expects to be able to recoup 100% of Net Working if they shut down. Assume that investment in working capital occurs in year 0 at the start of the project. Scrap value of scooters at the end of 5 years: $20,000. (remember that any capital gains when selling are taxable) Assume that Blaze makes the necessary investments, operates for 5 years, and then shuts down, selling the scooters for scrap and recouping Net Working Capital. What are their expected after-tax cash flows for year 0 through 5

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 10:50
You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.
Answers: 3
question
Business, 22.06.2019 21:00
Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.
Answers: 1
question
Business, 22.06.2019 23:30
Match the different financial tasks to their corresponding financial life cycle phases wealth protection, wealth accumulation and wealth distribution
Answers: 3
question
Business, 23.06.2019 01:20
Boxes of honey nut oatmeal are produced to contain 16.0 ounces, with a standard deviation of 0.20 ounce. for a sample size of 49, the 3-sigma -x chart control limits areupper control limit (ucl-x) = ounceslower control limit =(lcl=max
Answers: 1
You know the right answer?
Blaze Scooters is considering expanding into a new college town and has the following operating data...
Questions
question
Social Studies, 12.12.2020 16:20
question
Mathematics, 12.12.2020 16:20
question
Mathematics, 12.12.2020 16:20
question
English, 12.12.2020 16:20
Questions on the website: 13722367