Archive for July, 2009

Net present value (NPV). Need help with this question.?

I really need some help with this question….
Watson Leisure Time Sporting Goods needs to make a decision relating to buying a new piece of equipment (to be used over a six period) for $320,000.
Assume the cash flows and depreciation (based upon the use of the 5-year MACRS Schedule and Table 12-9) for the new equipment is as follows:
Cash Flow Depreciation
1 $120,000 $64,000
2 $105,000 $102,400
3 $80,000 $61,440
4 $65,000 $36,800
5 $53,000 $36,800
6 $45,000 $18,5000
The firm has a 36% tax rate. Assuming depreciation is the only expense and based upon the cost of capital of 10%.
How do I calculate the net present value (NPV), to find out if this equipment should be purchased?, more 

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Kendra Corporation is involved in the business of injection molding of plastics…………?

It is considering the purchase of a new computer-aided design and manufacturing machine for $425,000. The company believes that with this new machine it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $95,000 for the next 6 years. Management requires a 10% rate of return on all new investments.
Calculate the internal rate of return on this new machine., more 

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Any1 who knows where I can download samples of business cash flows & business plans for free?

2 b specific I’m looking 4 a Tutorial College related & (Entertainment) Music Production Recording Label.
PLS assist!, more 

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what is net receivables?

I am working on an acoounting assisgnment, I need to complete a statement of cash flows under the direct method., more 

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How to increase my cash flow on facebook mobsters?

my facebook mobsters cash flow keeps decreasing. how do i stop that?, more 

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Who decides what commercials will be played on a channel?

Okay, so I’m taking action, starting here and I’ll take it as far as I can.
I’m doing this to save anyone I can, people I don’t know because I have a conscience and my little feelings get hurt each time I read a story about this…
First, I’m wanting to know who has control over what advertisements/commercials are played on a specific channel?
I watch CB33 (I think) - http://www.the33tv.com/. Late night after Cheaters comes on, infomercials follow. I watch these. Some offer products such as (weight sets, sexual enhancers, and fake overnight money makers).
I’m standing against the fake overnight money makers.
A couple being “Jeff’s Shortcut to Internet Millions”, “Cash Flow Notes”, and “Cash for Gold”(which I first hand experienced).
There’s millions of stories on these. I’ve been reading into them for a while. I actually met a guy on a forum who lived close to me here in Dallas. We met up after he told me his story. Because, of course anyone can conjure a big lie to try and impress you.
We met at a starbucks and he brought his packet from Jeff’s Shortcut–. There’s his proof right there. He went on and described the whole process and how the simple packet/book he was given didn’t teach him anything a child wouldn’t know.
He was a man who lost his job, had a small amount of money and tried to make it big in a down economy.
I’m wondering if channel 33 (the news crew or whoever), has the ability to stop airing these. They’re all about supporting and helping us through these “hard times” but are they helping when they air fraudulent advertisements and scams?
They don’t have a forum on their site, just a twitter account and a facebook. I don’t use either of those sites - so I’m not sure if I can comment and have some of their other viewers support me through this.
I thought cash for gold was a simple solution to get rid of jewelry (that I NEVER wear) and make a decent buck. I was sent 6$ for hundreds of dollars of jewelry. I immediately sent my check back, carefully followed their refund/return policy and never saw my money again because they claimed they didn’t receive it before the 30 days. How was I to know of this scam?
–This is exactly what I’m trying to protect other people from, and I just need to be pointed in the person responsible for allowing it.
As always, I rate any good answers with thumbs up, best answer gets a full row of stars :) Thanks
Chris
p.s. - If I’m successful, I plan on carrying this on to ever channel that airs these., more 

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How do you determine the exact financial position of a company?

I’d like to go through Murray Goulburn’s 2008/2009 annual report and I want to know if the company is in good financial position. I know by looking at the balance sheet, income statement and cash flow statements but how do I find that in exact like looking into what transaction?
Also, how do I find the issues that the company have in terms of finances?
Hope these questions be answered entirely. Thanks., more 

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PV Annuity question 10 pts best ansse?

PV Annuity Question:
“If you will get a series of future cash flows of $5000 per year for 2 years, and you would like to earn 8% on your investment, how much are you willing to invest today”
“If you are told that you will receive an annuity of 1,000,000 per year for 20 years, and you would like to earn 8% of your money, what is the most you would invest today?”
I dont get it… wouldn’t I just want to invest all my money?, more 

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Financing Project Question?

ABC is considering a project, which will require an initial investment of $9M and will generate before tax operating cash flows of $4150000/year for 5 years. The risk free interest rate is 4%, marginal tax rate is 40%, and unlevered cost of equity capital is 12%.
a) What is projects NPV? Answer figured is -$24107.26
b) Assume that project will be financed enitrely with debt at an interest rate of 6%. Floatation costs are equal to 10% of gross proceeds. What is project’s APV if loan is:
1) paid back in equal principal amounts/year for each of the 5 years?
2) amortized so that total before tax payment (interest principal repayment) is constant/year?
c) what will be project’s APV if project is financed by $3M equity and $6M in debt provided by the federal government at a subsidized rate of 2%. Loan will be paid back in full at the end of 5 years., more 

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Suppose a project has conventional cash flows and a positive NVP. What do you know about its payback? Its prof?

Suppose a project has conventional cash flows and a positive NVP. What do you know about its payback? Its profitably index? Its IRR? Explain, more 

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