Berwick's Bike shops initial capital cost (not including working capital) is 750,000, expected after - tax operating cash flow is $225,000 per year for five years, and the recovery of capital assets after five years is §75,000. There is also a $100,000 increase in working capital at the beginning of the project that is recovered in whole atthe end of the life of the project in year 5. Ifthis project has a required rate of return of 15%, what is its IRR? Use a financial calculator to determine your answer

DDR Enterprises is analyzing an expansion project.  The project's installed cost is $80,000.  It is eligible for 100% bonus depreciation.  The project has a $12,000 salvage value at the end of its five year expected life.  The project will requie an additional $8,000 investment in net working capital.  The tax rate is 25%.  What is the project's initial investment?   If you could show the steps in calcualtion too that would be great!

Calculate the capitalized cost of a project with a P3,000,000 beginning cost and an extra P850,000 investment cost at the end of every ten years. For the first five years, the yearly running cost will be P100,000 at the end of each year, rising to P160,000 after that. In addition, a recurring significant rework cost of P300,000 is estimated every 13 years. Assume that i=15%. P4,281,935 P4,331,654 P4,202,388 P4,252,105

Determine the average rate of return for a project that is estimated to yield total income of $220,800 over 4 years, cost $419,000, and has a $41,000 residual value.

A 7-year project is expected to provide annual sales of $221,000 with costs of $97,500. The equipment necessary for the project will cost $360,000 and will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/-15 percent. The tax rate is 21 percent. What is the annual operating cash flow for the worst-case scenario? es Multiple Choice $77,946 $44,504 0 $70,623 $129,329 $49.221

A company is considering purchasing a new piece of equipment that costs $100,000 and has an estimated useful life of 5 years. The equipment should increase annual cash receipts by $80,000 per year. Cash expenses to operate the equipment should be $25,000. The company uses straight-line depreciation. If the after-tax cost of capital is 10% and the tax rate is (Round your 30%, the net present value of this project based on the tables in the appendix is $ answer to the nearest whole number.) Need help? Review these concept resources. Read About the Concept

Kelli is considering a project that would last for 3 years and have a cost of capital of 10.98 percent. The relevant level of net working capital for the project is expected to be $9,620.00 immediately (at year 0); $30,700.00 in 1 year; $27,500.00 in 2 years; and $8,520.00 in 3 years. Relevant expected operating cash flows and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following table. What is the net present value of this project? Operating cash flows Year 0 $0.00 Year 1 Year 2 Year 3 $52,500.00 $52,500.00 $52,500.00 Cash flows from capital spending -$97,700.00 $0.00 $0.00 $7,800.00 O $99,678.69 (plus or minus $10) $84,352.32 (plus or minus $10) O $114,320.23 (plus or minus $10) $24,215.27 (plus or minus $10) None of the above is within $10 of the correct answer

Determine the average rate of return for a project that is estimated to yield total income of $484,440 over 4 years, costs $668,000, and has a $66,000 residual value.

XYZ is evaluating a project that would require the purchase of a piece of equipment for $440,000 today. During year 1, the project is expected to have relevant revenue of $786,000, relevant costs of $201,000, and relevant depreciation of $132,000. XYZ would need to borrow $440,000 today to pay for the equipment and would need to make an interest payment of $33,000 to the bank in 1 year. Relevant net income for the project in year 1 is expected to be $337,000. What is the tax rate expected to be in year 1?     A rate equal to or greater than 21.96% but less than 26.61%     A rate less than 21.96% or a rate greater than 46.34%     A rate equal to or greater than 31.02% but less than 38.39%     A rate equal to or greater than 38.39% but less than 46.34%     A rate equal to or greater than 26.61% but less than 31.02%

A capital project requires a $50,000 increase in working capital. It also requires equipment at a price of $200,000. It takes $20,000 to install the equipment and $15,000 to ship the equipment to the desired location. The income tax rate is 35% and equipment is depreciated for income tax purposes on a straight line basis.What is the project's initial cash flow?Group of answer choices A.200,000 B.120,000 C.285,000 D.235,000 E. 250,000