Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Net cath flow and timeline depiction For each of the folowing prowecth, determine the net cabh fows and depict the canh flows on a tme

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Net cath flow and timeline depiction For each of the folowing prowecth, determine the net cabh fows and depict the canh flows on a tme ine cash outhom. had a bees retaned and liovidated ater 6 years. cash outhow (Select ali the dhoich that apply) A. This is a coovectional cath fow purem, whece the cash irfows are of cqual size, which in netemed to as an wnuly. A. A year 0 , the intid cash bow wai be -5112000 . For fach ot the yeas 1 the 20 , the net cash fow wal be 32800055,000=321000 cash ouitlow tad it bees rewined and liquidsted aher 6 yeur when an evemaul requirng a cash oulty at 1500,000 wit be required. The assers fquidesion wille an the end of year 14 is eqpected to be atro Net cash fow and fimeline depiction For ench of the followng projocts, determine the net cash flows, and depict the cash flows on a time Ine. cash ouition had a been retained and liquated ater 6 year. owh oritlow. (Seded al tere cheices that icpy) Net cash flow and timeline depiction For each of the following projects, determine the net cash flows, and depict the cash flows on a time line. a. A project that requires an initial cash flow of $119,000 and will generate annual operating cash inflows of $26,000 for the next 20 years. In each of the 20 years, maintenance of the project will require a $5,000 cash outlow. b. A new machine with an installed cost of $80,000. Sale of the old machine will yield $31,000 after taxes, Operating cash inflows generated by the replacement will exceed the operating cash inflows of the old machine by $17,000 in each year of a 6-year period. After 6 years, liquidation of the new machine will yield $24,000 after taxes, which is $12,000 greater than the after-tax proceeds expected from the old machine had it been retained and liquidated after 6 years. c. An asset that requires an initial cash flow of $3 million and will yield annual operating cash inflows of 5301,000 for each of the next 14 years. Operating cash outlays will be $21,000 for each year except year 5 , when an overhaul requiring a cash outlay of $500,000 will be required. The asset's liquidation value at the end of year 14 is expected to be zero. a. A project that requires an initial cash flow of $119,000 and will generate annual operating cash inflows of $26,000 for the next 20 years. In each of the 20 years, maintenance of the project will require a $5,000 cash ouclow. (Select all the choices that apply) A. This is a conventional cash flow pattern, where the cash inflows are of equal size, which is referted to as an annuity B. At year 0 , the initial cash flow will be -5119.000 . For each of the years 1 thru 20 , the net cash flow will be $26,00055,000=$21,000 C. At year 0 , the initial cash flow will be 5119,000. For each of the years 1 thru 20 , the net cash fow will be 526,000 Net cash flow and timeline depiction For each of the following projects, determine the net cash flows, and depict the cash flows on a time line. a. A project that requires an initial cash flow of $119,000 and will generate annual operating cash inflows of $26,000 for the next 20 years. In each of the 20 years, maintenance of the project will require a $5,000 cash outflow. b. A new machine with an installed cost of $80,000. Sale of the old machine will yield $31,000 after taxes. Operating cash inflows generated by the replacement will exceed the operating cash inflows of the old machine by $17,000 in each year of a 6-year period. After 6 years, liquidation of the new machine will yield $24,000 after taxes, which is $12,000 greater than the after-tax proceeds expected from the old machine had it been retained and liquidated after 6 years. c. An asset that requires an initial cash flow of $3 million and will yield annual operating cash inflows of $301,000 for each of the next 14 years. Operating cash outlays will be $21,000 for each year except year 5 , when an overhaul requiring a cash outlay of $500,000 will be required. The asset's liquidation value at the end of year 14 is expected to be zero. of the next 14 years. Operating cash outlays will be $21,000 for each year except year 5, when an overhaul requiring d cash outlay of $500,000 will be required. The asset's liquidation value at the end of year 14 is expected to be zero. a. A project that requires an initial cash flow of $119,000 and will generate annual operating cash inflows of $26,000 for the next 20 years, In each of the 20 years, maintenance of the project will require a $5,000 cash outflow. (Select all the choices that apply.) A. This is a conventional cash flow pattern, where the cash inflows are of equal size, which is referred to as an annuity. B. At year 0 , the initial cash flow will be $119,000. For each of the years 1 thru 20 , the net cash flow will be $26,000$5,000=$21,000. C. At year 0 , the initial cash flow will be 5119,000. For each of the years 1 thru 20 , the net cash flow will be $26,000. Net cath flow and timeline depiction For each of the folowing prowecth, determine the net cabh fows and depict the canh flows on a tme ine cash outhom. had a bees retaned and liovidated ater 6 years. cash outhow (Select ali the dhoich that apply) A. This is a coovectional cath fow purem, whece the cash irfows are of cqual size, which in netemed to as an wnuly. A. A year 0 , the intid cash bow wai be -5112000 . For fach ot the yeas 1 the 20 , the net cash fow wal be 32800055,000=321000 cash ouitlow tad it bees rewined and liquidsted aher 6 yeur when an evemaul requirng a cash oulty at 1500,000 wit be required. The assers fquidesion wille an the end of year 14 is eqpected to be atro Net cash fow and fimeline depiction For ench of the followng projocts, determine the net cash flows, and depict the cash flows on a time Ine. cash ouition had a been retained and liquated ater 6 year. owh oritlow. (Seded al tere cheices that icpy) Net cash flow and timeline depiction For each of the following projects, determine the net cash flows, and depict the cash flows on a time line. a. A project that requires an initial cash flow of $119,000 and will generate annual operating cash inflows of $26,000 for the next 20 years. In each of the 20 years, maintenance of the project will require a $5,000 cash outlow. b. A new machine with an installed cost of $80,000. Sale of the old machine will yield $31,000 after taxes, Operating cash inflows generated by the replacement will exceed the operating cash inflows of the old machine by $17,000 in each year of a 6-year period. After 6 years, liquidation of the new machine will yield $24,000 after taxes, which is $12,000 greater than the after-tax proceeds expected from the old machine had it been retained and liquidated after 6 years. c. An asset that requires an initial cash flow of $3 million and will yield annual operating cash inflows of 5301,000 for each of the next 14 years. Operating cash outlays will be $21,000 for each year except year 5 , when an overhaul requiring a cash outlay of $500,000 will be required. The asset's liquidation value at the end of year 14 is expected to be zero. a. A project that requires an initial cash flow of $119,000 and will generate annual operating cash inflows of $26,000 for the next 20 years. In each of the 20 years, maintenance of the project will require a $5,000 cash ouclow. (Select all the choices that apply) A. This is a conventional cash flow pattern, where the cash inflows are of equal size, which is referted to as an annuity B. At year 0 , the initial cash flow will be -5119.000 . For each of the years 1 thru 20 , the net cash flow will be $26,00055,000=$21,000 C. At year 0 , the initial cash flow will be 5119,000. For each of the years 1 thru 20 , the net cash fow will be 526,000 Net cash flow and timeline depiction For each of the following projects, determine the net cash flows, and depict the cash flows on a time line. a. A project that requires an initial cash flow of $119,000 and will generate annual operating cash inflows of $26,000 for the next 20 years. In each of the 20 years, maintenance of the project will require a $5,000 cash outflow. b. A new machine with an installed cost of $80,000. Sale of the old machine will yield $31,000 after taxes. Operating cash inflows generated by the replacement will exceed the operating cash inflows of the old machine by $17,000 in each year of a 6-year period. After 6 years, liquidation of the new machine will yield $24,000 after taxes, which is $12,000 greater than the after-tax proceeds expected from the old machine had it been retained and liquidated after 6 years. c. An asset that requires an initial cash flow of $3 million and will yield annual operating cash inflows of $301,000 for each of the next 14 years. Operating cash outlays will be $21,000 for each year except year 5 , when an overhaul requiring a cash outlay of $500,000 will be required. The asset's liquidation value at the end of year 14 is expected to be zero. of the next 14 years. Operating cash outlays will be $21,000 for each year except year 5, when an overhaul requiring d cash outlay of $500,000 will be required. The asset's liquidation value at the end of year 14 is expected to be zero. a. A project that requires an initial cash flow of $119,000 and will generate annual operating cash inflows of $26,000 for the next 20 years, In each of the 20 years, maintenance of the project will require a $5,000 cash outflow. (Select all the choices that apply.) A. This is a conventional cash flow pattern, where the cash inflows are of equal size, which is referred to as an annuity. B. At year 0 , the initial cash flow will be $119,000. For each of the years 1 thru 20 , the net cash flow will be $26,000$5,000=$21,000. C. At year 0 , the initial cash flow will be 5119,000. For each of the years 1 thru 20 , the net cash flow will be $26,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

20th Edition

1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870

More Books

Students also viewed these Accounting questions

Question

2. What does the other person defi ne as the beginning?

Answered: 1 week ago

Question

1. What do you defi ne as the start of interaction?

Answered: 1 week ago