Reclamation of a gravel pit is expected to begin 9 years from today with estimated end of year costs of 1.5 million dollars each year at the end of years 9, 10, 11 and 12. Part A What amount would the company need to invest or escrow today (time zero) to cover the future liabilities of 1.5 million in years 9, 10, 11, & 12? Other opportunities exist to invest available capital elsewhere and earn 10% per year compounded annually.  Part B What amount would your company need to invest each year for the next 8 years (Years 1-8) to pay for the future liabilities of 1.5 million in years 9, 10, 11, & 12? Assume the same nominal 10% interest rate.

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Determine the average rate of return for a project that is estimated to yield total income of $600,000 over 4 years, costs $840,000, and has an $80,000 residual value. Round your answer to one decimal place.

Project Beta is a 7-year project which requires an initial outlay of $6,000.  This outlay will be depreciated using straight-line depreciation over the life of the project.  It will generate incremental revenue of $2400 per year and incremental costs (excluding depreciation) of $300.  The tax rate is 35%. What is the project's annual after-tax incremental earnings? Question 3Answer a. $135 b. $808 c. $251 d. $435

A company that manufactures magnetic flow meters expects to undertake a project that will have the cash flows estimated. First cost, $ -810,000 Equipment replacement cost in year 2, $ -300,000 Annual operating cost, $/year Salvage value, $ Life, years -860,000 250.000 4 an interest rate of 10% per year, what is the equivalent annual cost of the project? Find the AW value using tabulated factors. e equivalent annual cost of the project is $-820000

Give typing answer with explanation and conclusion  A six-year project has an initial requirement of $308,000 for fixed assets and $22,750for net working capital. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $89,120 and the discount rate is 7.50 percent. What is the profitability index?

What is the expected operating cash flow for year 2 of a project given the following information. To undertake the project, $321,000 must be spent on new equipment. The equipment has an expected life of 7 years and will be depreciated straight- line over that same period to a book value of 0. New annual sales of $211,000 are expected (expected sales are the same each year). Cost of goods sold are projected to be 44% of sales, Fixed cash operating expenses are $46,000 per year. Tax rate is 26%, in the event EBIT is negative, the firm would have a tax credit based on the 26% tax rate. O a. 78385.51 Ob. 65321.26 Oe. 64862.69 Od. 68135.92 O e. 82304.78 Of. 54216.64

Project Beta is a project which will last for 7 years and which requires an initial outlay of $3,000.  This outlay will be depreciated using straight-line depreciation over the life of the project.  It will generate incremental revenue of $1200 per year.  The value of incremental, after-tax earnings is $400 per year.  The project will require Net Working Capital equal to 10% of incremental revenue. What is the value of incremental free cash flow in Year 0? Question 5Answer a. $-3120 b. $2880 c. $-2880 d. $3120