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Use the following information for the next four questions: The Crimson Dawn Crime Syndicate is reviewing a potential investment project that would result in a

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Use the following information for the next four questions: The Crimson Dawn Crime Syndicate is reviewing a potential investment project that would result in a new starship that is rumored to be able to make the kessel run in under 12 parsecs. This project would entail a significant initial capital investment of $24,000,000 and these assets would need to be depreciated (straight-line to zero) over their 3 year life. The syndicate expects to be able to sell the assets for $9,750,000 at the end of the projects life, The syndicate expects to be able to bring in additional revenue of $24,640,000 annually during the 3 year period, and estimates the projects operating costs (excluding depreciation) will be 20% of revenues. The syndicate would also need to commit initial working capital to the project of $3,500,000. While the syndicate is able to avoid most of it's taxes it does expect to pay an approximately 25% tax rate, and usually requires a 10% rate of return for projects of this risk level. What is the Cash Flow From Assets for Year 0 for this new project? a. $26500000 b. $28500000 c. $29000000 d. $27500000 e. $25000000 Use the following information for the next four questions: The Crimson Dawn Crime Syndicate is reviewing a potential investment project that would result in a new starship that is rumored to be able to make the kessel run in under 12 parsecs. This project would entail a significant initial capital investment of $24,000,000 and these assets would need to be depreciated (straight-line to zero) over their 3 year life. The syndicate expects to be able to sell the assets for $9,750,000 at the end of the projects life. The syndicate expects to be able to bring in additional revenue of $24,640,000 annually during the 3 year period, and estimates the projects operating costs (excluding depreciation) will be 20% of revenues. The syndicate would also need to commit initial working capital to the project of $3,500,000. While the syndicate is able to avoid most of it's taxes it does expect to pay an approximately 25% tax rate, and usually requires a 10% rate of return for projects of this risk level. What is the Cash. Flow From Assets for Year 1 for this new project? a. 17435588 b. 15923280 c. 16784000 d. 16271457 e. 17687433 Use the following information for the next four questions: The Crimson Dawn Crime Syndicate is reviewing a potential investment project that would resuit in a new starship that is rumored to be able to make the kessel run in under 12 parsecs. This project would entail a significant initial capital investment of $24,000,000 and these assets would need to be depreciated (straight-line to zero) over their 3 year life. The syndicate expects to be able to sell the assets for $9,750,000 at the end of the projects life. The syndicate expects to be able to bring in additional revenue of $24,640,000 annually during the 3 year period, and estimates the projects operating costs (excluding depreciation) will be 20% of revenues. The syndicate would also need to commit initial working capital to the project of $3,500,000. While the syndicate is able to avoid most of it's taxes it does expect to pay an approximately 25% tax rate, and usually requires a 10% rate of return for projects of this risk level. What is the Net. Present Value for this new project? a. 21826469 b. 21716159 c. 23017776 d. 22362915 e. 23128411 Use the following information for the next four questions: The Crimson Dawn Crime Syndicate is reviewing a potential investment project that would result in a new starship that is rumored to be able to make the kessel run in under 12 parsecs. This project would entail a significant initial capital investment of $24,000,000 and these assets would need to be depreciated (straight-line to zero) over their 3 year life. The syndicate expects to be able to sell the assets for $9,750,000 at the end of the projects life. The syndicate expects to be able to bring in additional revenue of $24,640,000 annually during the 3 year period, and estimates the projects operating costs (excluding depreciation) will be 20% of revenues. The syndicate would also need to commit initial working capital to the project of $3,500,000. While the syndicate is able to avoid most of it's taxes it does expect to pay an approximately 25% tax rate, and usually requires a 10% rate of return for projects of this risk level. What is the Cash Flow From Assets for Year 3 for this new project? a. 28304385 b. 27596500 c. 28558778 d. 26822651 e. 26903024

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