Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please show work 3. the cfo for kaymer corpor

please show work 3. The CFO for Kaymer Corporation has...

80.2K

Verified Solution

Question

Accounting

please show work
image
3. The CFO for Kaymer Corporation has forecasted the following working capital needs for a four year project. Accounts receivable will be 15% of sales each year. Inventory will be 10% of sales each year, and accounts payable will be 13% of sales each year. The firm expects the following sales for each year of the project: The firm will start with an initial value of $10,000 in net work capital at year 0 . What is the investment in NWC for years 1 and 2? 4. Gillespie \& Miller PLC is considering the introduction of a new line of cookies. In order to produce the cookies, G\&M would have to invest $91,000 in new equipment. The equipment would be depreciated on a MACRS 7-year schedule. Sales and production costs are expected to be $43,000 per year and $20,000 per year, respectively. Furthermore, new net working capital of $7,500 would be needed immediately (it would be freed up at the end of the 7 years). The market value of the equipment is expected to be $23,000. G\&M's tax bracket is 21% and its discount rate on investments of this riskiness is 12%. What is the NPV the new line

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Is it possible to obtain an average coefficient of friction greater than unity in metal cutting?...

Mechanical Engineering
Q

gray code to excess 3 code converter circuit and its logic diagram and ic based diagram

Electrical Engineering
Q

Your firm recently divested some non-core assets and now has a significant amount of excess cash....

Finance
Q

Create an argument as to why education should be a power of the state or...

Biology
Q

4 In the circle above mzQ 3x mLU 2x 12 mzA 2x and mzD 2y...

Geometry
Q

1 The point P is on the unit circle The x coordinate of P is...

Geometry
Q

Question 40 The quadratic function y f z has the graph shown 63 k 5...

Basic Math
Q

A company has 12 510 available per month for advertising Newspaper ads cost 180 each...

Basic Math
Q

be specific use terminology 2. Describe two or three things...

Accounting
Q

Wallace Company provides the following data for next year: Month January February March April Budgeted...

Accounting
Q

Which of the following statements is true with regard to the deduction for losses? ...

Accounting
Q

At its December 31 year end, Jamison. Company recorded $200 interest payable on a $10.000,...

Accounting