Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. olafs pizza company is considering adding more din

Olafs Pizza Company is considering adding more dining space to its already successful restaurant. The...

80.2K

Verified Solution

Question

Finance

Olafs Pizza Company is considering adding more dining space to its already successful restaurant. The owner, Kristoff, has determined that the new dining space will add $100,000 per year in additional sales. The expenses on the expansion will be 45% of the new sales. As part of the expansion, additional cooking equipment will be purchased with an installed cost of $40,000. The equipment will be depreciated using a 7-year MACRS schedule. The tax rate facing the firm is 35%.

What is the project cash flow for year 1 of the project?

Question 11 options:

$27,500.45

$37,750.60

$40.500.45

$31,250.60

$41,000.60

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

Q

Do you think buying and selling for a profit is morally good or bad? Put yourself...

Finance
Q

Homogenous problem. Change of variable (x-y+3)dx + (x+y-1) dy = 0

Advance Math
Q

What is the reason for 5 Given Line I is an auxiliary line parallel to...

Geometry
Q

After the end of an advertising campaign the daily sales of a product fell rapidly...

Basic Math
Q

How many times would a coin have to show heads in 50 tosses to have...

Basic Math
Q

Find a conformal mapping which maps the region between |z-1|>1 and |z|<2 onto the upper...

Algebra
Q

f x O 4 2 co O x F R E O N C

Algebra
Q

Part C-August Variance Analysis During September of the current year, the controller was asked to...

Accounting
Q

Chelsea Ann is single, age 35 and wants to make a contribution to an IRA...

Accounting
Q

please answer quickly. Discuss the difference between accrual and cash basis accounting

Accounting
Q

Fraser Co. is considering a change to its cost structure. Below is the data relating...

Accounting
Q

1. While there has been significant progress towards a convergence of accounting US GAAP and...

Finance