Find your question
and Get expert's answers*
Homework Help
*Click here to submit
Refer a Friend
Discount up to 15%*
Prepared References
Save up to 50%*
Homework Help >> Finance Basics
  Calculating net operating cash flow for the initial year  

Question1)

Assume new instruments for a firm cost $18,000 with an extra installation fee of $2,000, both of which are depreciable. Complete the depreciation schedule shown below using the Modified Accelerated Cost Recovery System (MACRS) 3-year class.

Year    Rate    Basis    Depreciation
1           
2           
3           
4           

Question2)

A company is evaluating a proposed 4-year project.  The depreciable cost would include the following: $300,000 for the equipment, $20,000 for shipping, and $30,000 for installation. The depreciation life is under the MACRS 3-year class, with a salvage value of $45,000. The inventories would rise by $18,000 and accounts payable would rise by $3,000. Additionally, the new sales are estimated to be 150,000 units per year at $2.25 per unit. There is a variable operating cost that is 60% of sales and the company’s marginal tax rate is 35%.  Complete parts (a) through (c) below.

a) Find out the net operating cash flow for the initial year (Year 0).

b) Find out the net operating cash flow for Years 1, 2, and 3.

c) Find out the net terminal year cash flow.

Ask an Expert for Solution

Ask an Expert for Answer Calculating net operating cash flow for the initial year

Request for Solution Files

Expected delivery within 24 Hours

Course: Finance Basics

Ref. No:- TGS01776




Like US:-
Assignment Help

Ask an Expert & Get Answer

  • Quality work delivery
  • 100% Plagiarism free
  • Time on delivery
  • Privacy of work
Order Now
More Finance Basics Questions


You just won the lottery, You have just won the lottery and will receive $580,000 in one year. You will receive payments for 24 years, which will incr
Exam, Please let me know if u can do this assignment with step by step solutions. It is due this Thursday morning.
Midterm exam, Please let me know if u can help me with my exam. Attached my finance exam. It is due tomorrow at 12pm at night.