subject
Business, 03.06.2020 00:01 Mathewcastillo88

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 straight-line depreciation on all equipment, and the depreciation expense on the equipment would be $150,000 per year. Assume cash flows occur 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:
Determine the net present value of the project.

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 01:00
Who is better at multi-tasking? in business, employees are often asked to perform a complex task when their atten-tion is divided (i.e., multi-tasking). human factors (may 2014) published a study designed to determine whether video game players are better than non–video game play-ers at multi-tasking. each in a sample of 60 college stu-dents was classified as a video game player or a non-player. participants entered a street crossing simulator and were asked to cross a busy street at an unsigned intersec-tion. the simulator was designed to have cars traveling at various high rates of speed in both directions. during the crossing, the students also performed a memory task as a distraction. two variables were measured for each student: (1) a street crossing performance score (measured out of 100 points) and (2) a memory task score (measured out of 20 points). the researchers found no differences in either the street crossing performance or memory task score of video game players and non-gamers. “these results,” say the researchers, “suggest that action video game players [and non-gamers] are equally susceptible to the costs of dividing attention in a complex task”
Answers: 1
question
Business, 22.06.2019 03:30
When the federal reserve buys and sells bonds to member banks, it is called a. monetary policy b. reserve ratio c. interest rate adjustment d. open market operations
Answers: 2
question
Business, 22.06.2019 19:40
Adistinguishing feature of ecological economics is the concept of cost-benefit analysis steady-state economies that, like natural systems, neither grow nor shrink environmental damage and also environmental benefits are external greenwashing to increase public acceptance of products the only healthy economy is one that is growing
Answers: 1
question
Business, 22.06.2019 20:30
The research of robert siegler and eric jenkins on the development of the counting-on strategy is an example of design.
Answers: 3
You know the right answer?
Brodigan Corporation has provided the following information concerning a capital budgeting project:...
Questions
question
Mathematics, 19.09.2019 11:30
question
Spanish, 19.09.2019 11:30
question
English, 19.09.2019 11:30
Questions on the website: 13722360