Examlex
Margarite's Enterprises is considering a new project that will require $345,000 for new fixed assets,$160,000 for inventory,and $35,000 for accounts receivable.Short-term debt is expected to increase by $110,000.The project has a 5-year life.The fixed assets will be depreciated straight-line to zero over the life of the project.At the end of the project,the fixed assets can be sold for 25 percent of their original cost.The net working capital returns to its original level at the end of the project.The project is expected to generate annual sales of $550,000 and costs of $430,000.The tax rate is 35 percent and the required rate of return is 15 percent.
What is the cash flow recovery from net working capital at the end of this project?
Q20: Liquidity is:<br>A)a measure of the use of
Q45: Kurt's Toy Co.has had total annual returns
Q50: Which of these are disadvantages of the
Q51: Les is concerned that his variable cost
Q54: A $1,000 face value corporate bond matures
Q62: When computing the weights to be used
Q65: Buster's target debt-to-equity ratio is .6,its cost
Q70: NASDAQ has which one of these features?<br>A)Broker
Q71: Assume a project currently has a negative
Q73: Tree Top Furniture has current sales of