Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. abc inc. is evaluating a project that will increas

ABC Inc. is evaluating a project that will increase annual sales by $175,000 and annual...

90.2K

Verified Solution

Question

Finance

ABC Inc. is evaluating a project that will increase annual sales by $175,000 and annual cash costs by $98,000. The project will initially require $130,000 in fixed assets that will be depreciated straight-line to a zero book value over the 4-year life of the project. The applicable tax rate is 32 percent.

(Input all answers as values with no commas, with no symbols ex. no $ or %. Input all % answers as whole numbers without symbols ex. 10.03 for .1003. Input all final answers two decimal places out.)

ABC Inc. has determined that it requires $20,000 in NWC, has a required rate of return of 12%, and plans on using the operating cash flow from problem 19 to evaluate its project. What is the NPV? U(Hint: Include NWC at the beginning and end of the project)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Which is NOT a function of lipids in birds and mammals Lipids provide a protective...

Basic Math
1.2K views

Suppose you are constructing confidence intervals using a normal table What Z value would you...

Basic Math
1.2K views

Sometimes probability statements are expressed in terms of odds The odds in favor of an...

Basic Math
1.2K views

A microscope allows a scientist to see a circular region that is 1.29 millimeters in...

Calculus
1.2K views

Let f x 4 x Compute f 64 and find an equation of the tangent...

Algebra
1.2K views

8 The ratio of a person s weight on Earth to the person s weight...

Accounting
1.2K views

Gleim 6 Deductions from AGI [1] Which one of the following expenses...

Accounting
1.2K views

Stanfield Furnishings is a local furniture manufacturer who sells handcrafted furniture to various...

Accounting
1.2K views

Accounting for Tuition and Fees Revenue At the beginning of the fall...

Accounting
1.2K views

Mullis Company sold merchandise on account to a customer for $925, terms n/30. The journal...

Finance
1.2K views

WACC. Eric has another get-rich-quick idea, but needs funding to support it. He chooses an...

Accounting
1.2K views

On January 1, 2020, Swifty Corporation had 79,000 shares of $1 par value common stock...