Business, 28.11.2019 01:31 dbag1162

Xyz company is considering whether a project requiring purchasing of new equipment worth investing. the firm has spent $12,000 on consulting 2 months prior to the project as well as $7,000 in market study about a year ago. in order to start the new project, the firm has to replace the old machine which has a book value of $0 and will be scraped. the new machine will cost the firm $220,000. in order to make the machine working condition, xyz will spend $7,000 in installation and $3,000 in shipping. since it will produce more, $10,000 investment in net working capital is required. the project will increase annual revenues by $125,000 and will increase annual operating cost by $45,000. the company has a marginal tax rate of 34%. it has the cost of capital of 14% and the project will last 5 years. what is the initial outlay of this project? what is the initial outlay of this project? round to the nearest penny. do not include a dollar sign in your answer. type the absolute value of the answer. (i. e. if your answer is -$20,000 since it is cost to replace, type 2 as your answer.)

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 22:40

Gyou plan to deposit $1,700 per year for 5 years into a money market account with an annual return of 2%. you plan to make your first deposit one year from today. what amount will be in your account at the end of 5 years? round your answer to the nearest cent. do not round intermediate calculations. $ assume that your deposits will begin today. what amount will be in your account after 5 years? round your answer to the nearest cent. do not round intermediate calculations.

Answers: 2

Answer

Business, 22.06.2019 08:30

Kiona co. set up a petty cash fund for payments of small amounts. the following transactions involving the petty cash fund occurred in may (the last month of the company's fiscal year). may 1 prepared a company check for $350 to establish the petty cash fund. 15 prepared a company check to replenish the fund for the following expenditures made since may 1. a. paid $109.20 for janitorial services. b. paid $89.15 for miscellaneous expenses. c. paid postage expenses of $60.90. d. paid $80.01 to the county gazette (the local newspaper) for an advertisement. e. counted $26.84 remaining in the petty cashbox. 16 prepared a company check for $200 to increase the fund to $550. 31 the petty cashier reports that $380.27 cash remains in the fund. a company check is drawn to replenish the fund for the following expenditures made since may 15. f. paid postage expenses of $59.10. g. reimbursed the office manager for business mileage, $47.05. h. paid $48.58 to deliver merchandise to a customer, terms fob destination. 31 the company decides that the may 16 increase in the fund was too large. it reduces the fund by $50, leaving a total of $500.

Answers: 1

Answer

Business, 22.06.2019 10:30

What are the positive environmental trends seen today? many industries are taking measures to reduce the use( _gold,carbon dioxide,ozone_) of -depleting substances and are turning to(_scarce,renewable,non-recyclable_) energy sources though they may seem expensive. choose one of those 3 option to fill the

Answers: 3

Answer

Business, 22.06.2019 20:00

After testing its water, a city water department issues a report to the related citizens, noting what chemicals have been identified, their doses, and the estimated risks of exposure at these levels. this report represents a type of

Answers: 1

Answer

You know the right answer?

Xyz company is considering whether a project requiring purchasing of new equipment worth investing....

Questions