Brodigan corporation has provided the following information concerning a capital budgeting project: investment required in equipment $450,000 net annual operating cash inflow $220,000 tax rate 30% after-tax discount rate 12% the expected life of the project and the equipment is three years, and the equipment has zero salvage value. the company uses straightline depreciation on all equipment, and the depreciation expense on the equipment would be $150,000 per year. assume cash flows occur copyright penn foster, inc. 2018 page 13 course version: 2 at the end of the year except for the initial investments. the company takes income taxes into account in its capital budgeting. the net annual operating cash inflow is the difference between the incremental sales revenue and incremental cash operating expenses. required: what is the net present value of the project?

How do primary and secondary industries differ

Suppose that electricity producers create a negative externality equal to $5 per unit. further suppose that the government imposes a $5 per-unit tax on the producers. what is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?

Alpine west, inc., operates a downhill ski area near lake tahoe, california. an all-day, adult ticket can be purchased for $55. adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from december 1 through april 30. the season pass is nontransferable, and the $450 price is nonrefundable. alpine expects its season pass holders to use their passes equally throughout the season. the company’s fiscal year ends on december 31. on november 6, 2009, jake lawson purchased a season ticket. required: 1. when should alpine west recognize revenue from the sale of its season passes? 2. prepare the appropriate journal entries that alpine would record on november 6 and december 31. 3. what will be included in the 2009 income statement and 2009 balance sheet related to the sale of the season pass to jake lawson?