Henderson Inc. has purchased a new fleet of trucks to deliver its merchandise. The trucks have a useful life of 8 years and cost a total of $500,000. Henderson expects its net increase in after-tax cash flow to be $150,000 in Year 1, $175,000 in Year 2, $125,000 in Year 3, and $100,000 in each of the remaining years. What is the payback reciprocal for the fleet of trucks? *   A. 29% B. 25% C. 20% D. 24%

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Build corporation wants to purchase a new machine for $298,000. Management predicts that the machine can produce sales of $205,000 each year for the next four years.

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What will be the annual cash outflows for Mimi Inc. if it leased a milling machine for $8, 200 per year for 5 years. Assume that the new machine cost $ 42,000 and will depreciate on a straight line basis over the 5 years and that Mimi has a tax rate of 32 percent. Question 15Select one: a. - $5,576 b. $42,000 C. -$8,264 d. $33,800 e. - $2,688

A neighborhood shopping center is expected to generate after-tax cash flow of $750,000 per year (at end of year) indefinitely. If an interested buyer has a cost of money of 13 %, how much will he be willing to pay for this shopping center? A $6.64 million B) $7.50 million $5.77 million D $2.21 million

Consider a piece of equipment for which the expenditure at the beginning of period 1 is $20,000 The net revenue at the end of year 1 is $8,000 The net revenue at the end of year 2 is $14,000 The net revenue at the end of year 3 is $18,000, which includes salvaging the equipment. The interest rate is 5%. What is the net present value of this investment over the three year period including the initial purchase of the asset and the revenue from the first three years of operation (including sale of the equipment)?

Using the previous table, enter the correct factor for three periods at 5%: Periodic payment x Factor = Present value $6,000 x   = $16,338 The controller at Ross has determined that the company could save $6,000 per year in engineering costs by purchasing a new machine. The new machine would last 12 years and provide the aforementioned annual monetary benefit throughout its entire life. Assuming the interest rate at which Ross purchases this type of machinery is 9%, what is the maximum amount the company should pay for the machine? $fill in the blank 5aca5ff34fa005f_2 (Hint: This is basically a present value of an ordinary annuity problem as highlighted above.) Assume that the actual cost of the machine is $50,000. Weighing the present value of the benefits against the cost of the machine, should Ross purchase this piece of machinery?  Use snippets to answer

Assume a machine was purchased 5 years ago for $800,000 and has been 75% depreciated. The firm decides to sell this machine for $350,000. The firm's tax rate is 20%. Calculate how much net cash the sale of this equipment will generate for the firm. Answer rounded to the nearest whole dollar; for example 42,345 for your answer.

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