Sunday
March 1, 2015

Homework Help: Finance

Posted by Whitney on Wednesday, February 23, 2011 at 11:59am.

3. Your firm is considering buying a new machine that costs $200,000, is expected to generate $110,000 in new revenue each year and will cost $45,000 a year to operate. If your firm's marginal income tax rate is 35% what is the Net Cash Flow your firm will realize from the new machine during the first year? Assume the MACRS depreciation rate for the machine for year 1 is 20%. Note - do not include the cost of the machine in your answer.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - A firm has an opportunity to invest in a new device that will replace ...
Fundamentals of Contempary Management - A firm has an opportunity to invest in a...
Finance - A firm has debt with a market value of $40 million and an equity value...
Finance - Firm is contemplating the purchase of a new warehouse inventory ...
Budgeting - A well-established coffee shop, the Hot New Café, wants to build a ...
finance - New project analysis You must evaluate a proposal to buy a new milling...
finance - New project analysis You must evaluate a proposal to buy a new milling...
college finance - 37. Morage Corp. is replacing an entire baking line that was ...
Finance - Your firm has the option of making an investment in new software that ...
Finance - Chip’s Home Brew Whiskey management forecasts that if the firm sells ...

Members