subject
Business, 16.07.2021 21:20 jazminpagan15

LO, Inc., is considering an investment of $444,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $283,100 and $88,800, respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 2 percent. The company will use the straight-line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $64,000 in nominal terms at that time. The one-time net working capital investment of $19,500 is required immediately and will be recovered at the end of the project. The corporate tax rate is 24 percent. Required:
What is the projectâs total nominal cash flow from assets for each year?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 11:10
Sam and diane are completing their federal income taxes for the year and have identified the amounts listed here. how much can they rightfully deduct? • agi: $80,000 • medical and dental expenses: $9,000 • state income taxes: $3,500 • mortgage interest: $9,500 • charitable contributions: $1,000.
Answers: 1
question
Business, 22.06.2019 12:00
Describe the three different ways the argument section of a cover letter can be formatted
Answers: 1
question
Business, 22.06.2019 22:20
Which of the following events could increase the demand for labor? a. an increase in the marginal productivity of workers b. a decrease in the amount of capital available for workers to use c. a decrease in the wage paid to workers d. a decrease in output price
Answers: 1
question
Business, 23.06.2019 08:00
Whom do progressive taxes assess? a. only a large percentage of high-income households b. only a large percentage of organizations c. a large percentage of high-income households and organizations d. a large percentage of low-income households e. a small percentage of high-income households
Answers: 1
You know the right answer?
LO, Inc., is considering an investment of $444,000 in an asset with an economic life of five years....
Questions
question
Mathematics, 24.02.2021 09:10
question
English, 24.02.2021 09:10
question
Mathematics, 24.02.2021 09:10
question
Mathematics, 24.02.2021 09:10
question
Mathematics, 24.02.2021 09:10
question
Arts, 24.02.2021 09:10