Finance

Temple Corp. is considering a new project \vhose data are shown below. 'rhe equipment that would be used
has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a
zero salvage value. No new working capital would be required. Revenues and other operating costs are
expected to be constant over the project's 3-year life. What is the project's NPV?
Risk-adjusted WACC
Net investment cost (depreciable basis)
Straight-line depree. rate
Sales revenues, each year
Operating costs (exc!. deprec.), each year
Tax rate
10.0%
$65,000
33.3333%
$65,500
$25,000
35.0%

  1. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. accounting

    Jackson Company invests in a new piece of equipment costing $40,000. The equipment is expected to yield the following amounts per year for the equipment's four-year useful life: Cash revenues $ 60,000 Cash expenses (32,000)

  2. Investing ( pease help)

    Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.

  3. Corporate Finance

    19. Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the MACRS rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4.

  4. Math

    Mr. Wong is a history teacher. In order to study how his 1st period class did on a 100-point test, he made the stem-and-leaf plot shown. Twenty-five students took the test. What conclusion can be drawn about the distribution of

  1. financ

    All techniques with NPV profile- mutually exclusive projects. Projects A and B, of equal risk. Are alternatives for expanding Rosa Company’s capacity. The firm’s cost of capital is 13%. The cash flows for each project are

  2. Math

    Help lesson 10 tools of geometry help been on to 1 hour plz help!no pics 1.what is the Vaule of x in the diagram shown below 2.which term correct ly describes the figure shown below 3.which statement is true 4.which is rhe best

  3. English

    Why did the nightly knocking at the temple finally stop in “Old Man of the Temple” by R. K. Narayan? A. The narrator helped the old man find his way to his wife. B. They drove the old man out of town, so he wouldn’t bother

  4. Finance

    What's the net present value (NPV) of this replacement project? The old equipment has a book value of $200,000 (year 0) and a current salvage value of $300,000 (year 0). It is being depreciated on a straight-line basis. It has

  1. od

    Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage

  2. Finance

    Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3 year tax life and would be fully depreciated by the straight line method over 3 years but it would have a positve pre-tax salvage

  3. algebra

    Alexa created the line of best fit shown for the data points graphed. Is the line a good representation for this data? Explain your reasoning. A graph is shown in the xy-plane. the values on the x-axis range from 0 to 18 in

  4. Texas State HIstory

    Which advanced technology company started as a student-run business at the University of Texas at Austin? A. Apple.Inc B.Dell Inc. C. Intel Corp. D. Microsoft Corp. I'm not sure, could somebody please help me?

You can view more similar questions or ask a new question.