KADS, Inc. Has spent $400,000 on research to develop a new computer game. The firm is planning to spend $200,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $50,000. The machine has an expected life of three years, a $75,000 estimated resale value, and falls under the MACRS 7-year class life. Revenue from the new game is expected to be $600,000 per year, with costs of $250,000 per year. The firm has a tax rate of 35 percent, an opportunity cost of capital of 15 percent, and it expects net working capital to increase by $100,000 at the beginning of the project.


What will the cash flows for this project be? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. )

Answers

Answer 1

The cash flows for this project will be -$560,450 (negative amount indicated by a minus sign).

To calculate the cash flows for this project, we need to consider the initial investment, operating cash flows, and terminal cash flows over the project's life.

Initial Investment:

Research and development cost: -$400,000

Machine cost: -$200,000

Shipping and installation cost: -$50,000

Net working capital increase: -$100,000

Total Initial Investment: -($400,000 + $200,000 + $50,000 + $100,000) = -$750,000

Operating Cash Flows:

The operating cash flows include revenue, costs, and depreciation for each year.

Revenue: $600,000 per year

Costs: $250,000 per year

Depreciation: Calculated using MACRS depreciation method for 7-year class life.

Year 1:

Depreciation: $200,000 (rounded to the nearest dollar) [MACRS depreciation for Year 1]

Operating Cash Flow: $600,000 - $250,000 - $200,000 = $150,000

Year 2:

Depreciation: $320,000 (rounded to the nearest dollar) [MACRS depreciation for Year 2]

Operating Cash Flow: $600,000 - $250,000 - $320,000 = $30,000

Year 3:

Depreciation: $192,000 (rounded to the nearest dollar) [MACRS depreciation for Year 3]

Operating Cash Flow: $600,000 - $250,000 - $192,000 = $158,000

Terminal Cash Flows:

Terminal cash flow includes the salvage value of the machine and the tax effect of selling the machine.

Salvage Value: $75,000

Tax Effect of Salvage Value: Taxable gain or loss on the sale of the machine = (Selling price - Book value)

Book Value: Accumulated depreciation at the end of Year 3 = $200,000 + $320,000 + $192,000 = $712,000

Selling price: $75,000

Taxable gain or loss: $75,000 - $712,000 = -$637,000

Tax on gain or loss: Tax rate (35%) * Taxable gain or loss = 0.35 * (-$637,000) = -$223,450

Terminal Cash Flow: Salvage Value + Tax on gain or loss = $75,000 + (-$223,450) = -$148,450

Now, let's sum up all the cash flows:

Cash Flows = Initial Investment + Operating Cash Flows + Terminal Cash Flow

Cash Flows = -$750,000 + $150,000 + $30,000 + $158,000 + (-$148,450)

Cash Flows = -$560,450

Therefore, the cash flows for this project will be -$560,450 (negative amount indicated by a minus sign).

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Related Questions

x is 50% more than y. Write down a ratio in the form of y:x .

Answers

Answer: 50:50 i think

Answer:

2 : 3

Step-by-step explanation:

if x = 3, y = 2

The difference : x - y = 3 - 2 = 1

represents for "y":

[tex]\frac{1}{y}(100) =\frac{1}{2} (100)=50[/tex]%

Hope this helps

Points and their residual values are shown in the table. a 3-column table with 5 rows. the first column is labeled x with entries 1, 2, 3, 4, 5. the second column is labeled y with entries 2, 3.5, 5, 6.1, 8. the third column is labeled residual value with entries negative 0.4, 0.7, negative 0.2, negative 0.6. which residual value is the farthest from the line of best fit? 0.19 0.7 2 8

Answers

The residual value, which is the farthest from the line of best fit for the table which shows points and their residual values, is 0.7.

What is residual value?

The residual value is the estimated value which is calculated for the end of the lease terms for a fixed asset.

Points and their residual values are shown in the table. A 3-column table with 5 rows.

 x                               1,     2,     3,     4,     5.  y                               2,   3.5,   5,    6.1,    8.Residual Value       -0.4, 0.7,  -0.2, -0.6   0

The simple regression line can be represented as,

[tex]\hat y=\alpha +\beta X+\hat e[/tex]

Here α is the constant, β is the slope and e is the residue.

The point which is farthest from the best fit of the line is 3.5. At y=3.5, the value of residue is 0.7.

Thus, the residual value, which is the farthest from the line of best fit for the table which shows points and their residual values, is 0.7.

Learn more about the residual value here;

https://brainly.com/question/1168961

Answer:

0.7

Step-by-step explanation:

edge

John has a bag of different colored marbles. He has 6 red marbles, 3 blue marbles, 7 yellow marbles, and 5 green marbles. If John reaches into the bag and randomly pulls out a marble, what is the probability that the marble will be blue? (If necessary, round to the nearest tenth.) (as a percent please!!)

Answers

Answer:

P(blue) ≈ 14.3%

Step-by-step explanation:

probability P is calculated as

P = ( favourable outcome ) ÷ ( total number of possible outcomes )

here favourable outcome is blue of which there are 3

number of possible outcomes is the total = 6 + 3 + 7 + 5 = 21

P(blue) = [tex]\frac{3}{21}[/tex] = [tex]\frac{1}{7}[/tex]

to convert to a percentage multiply the fraction by 100%

P (blue) = [tex]\frac{1}{7}[/tex] × 100% = 100% ÷ 7 ≈ 14.3% ( to the nearest tenth )

Answer:

14.3%

Step-by-step explanation:

which of the segments below is a radius?

Answers

Answer:

OZ

Step-by-step explanation:

radius goes from the circle center point, outward.

Answer: OZ, OK, OG

Step-by-step explanation: each of these segments have a connection directly from the center of the circle to the edge of the circle

a sector of a circle with radius 21cm has an area of 280cm², find the perimeter of the sector.​

Answers

Answer:

26.67 cm

Step-by-step explanation:

Area of a sector

A = πr² x θ/360°280 = 22/7 x 21 x 21 x θ/360°280 = 22 x 3 x 21 x θ/360°40 = 22 x 9 x θ/360°40 = 22 x θ/40°1600 = 22 x θθ = 1600/22 = 800/11 = 72.7°

Finding Perimeter (Arc Length)

2πr x θ/360°2 x 22/7 x 21 x 800/11 x 1/3602 x 22 x 3 x 800 x 1/11 x 1/360132/11 x 800/36012 x 20/912/9 x 204/3 x 2080/326.67 cm

Which expression represents these words?

6 less than the quotient of 36 and 4


(36−4)+6

(36−4)−6

​364+6

364−6

Answers

Answer:

[tex]\frac{36}{4} -6[/tex]

Step-by-step explanation:

the quotient of 36 and 4 is:

[tex]\frac{36}{4}[/tex]

Mathematically we write  6 less than 36/4 like this :

[tex]\frac{36}{4} -6[/tex]

Which is a TRUE statement about slope?
A. The slope of a line is never 0.

B. When a line increases as you read it from left to right, the slope of the line is negative.

C. When the slope of a line is negative, the y-values decrease as the 3-values increase.

D. The slope of a line is always positive.

Answers

Answer:

C)

Step-by-step explanation:

Two bags, A and B, each contain only green marbles and red marbles.
There are 6 green marbles and 4 red marbles in bag A.
There are 8 green marbles and 2 red marbles in bag B.
One marble is going to be taken at random from bag A and placed in bag B.
A marble is then going to be taken at random from bag B.
Work out the probability that this marble will be a green marble. ​

Answers

Using it's concept, it is found that there is a 0.7818 = 78.18% probability that this marble will be a green marble. ​

What is a probability?

A probability is given by the number of desired outcomes divided by the number of total outcomes.

There are two ways to end up with a green marble selected.

Green in bag A(6/10 probability) and in bag B(9/11 probability).Red in bag A(4/10 probability) and green in bag B(8/11 probability).

Hence, the probability that this marble will be a green marble is given by:

[tex]p = \frac{6}{10} \times \frac{9}{11} + \frac{4}{10} \times \frac{8}{11} = \frac{54 + 32}{110} = 0.7818 = 78.18\%[/tex]

More can be learned about probabilities at https://brainly.com/question/14398287

PLEASE HELP FAST!!! I’ll give brainliest

Answers

Quadratic and trinomial. Because highest degree is 2 and there are 3 terms

How many miles can be driven using 5.5 gallons of gas?

Answers

Answer:

it depends on the car mpg but based on the average (24.9 mpg) you can drive about 136.95 miles

Step-by-step explanation:

24.9 x 5.5

What is the length of the diagonal of the rectangle?

Answers

Answer:

Length of diagonal of the rectangle is 21.25 units.

Step-by-step explanation:

Here we are given Length of the rectangle 17 and Width 12.75. To find length of the diagonal of the rectangle we will substitute the value of length and width in required formula:

We know that,

[tex] \\ \: \: \dashrightarrow \: \: { \underline{ \boxed{ \pink{ \pmb{\mathfrak {Diagonal = \sqrt {(Length)^2 + (Width)^2 }}}}}}} \\ \\ [/tex]

Substituting the required values:

[tex] \\ \: \: \dashrightarrow\sf \: \: Diagonal = {\sqrt{(17)^2 + (12.75)^2}} \\ \\ [/tex]

[tex]\: \: \dashrightarrow\sf \: \: Diagonal = \sqrt{289 + 162.5625} \\ \\ [/tex]

[tex]\: \: \dashrightarrow\sf \: \: Diagonal = \sqrt{451.5625} \\ \\ [/tex]

[tex]\: \: \dashrightarrow \: \: \pink {\underline{ \boxed{ \pmb{\frak {Diagonal = 21.25}}}}} \\ \\ [/tex]

Hence,

Length of diagonal of the rectangle is 21.25 units.

Step-by-step explanation:

Given :-

Length of rectangle = 17 unit width of rectangle = 12.75 unit

To find :-

⇝ Diagonal of rectangle

Solution :-

Formula for finding length of rectangle =

[tex] \sqrt{(length) {}^{2} + (width) {}^{2} } [/tex]

putting the known values ,

[tex] \sqrt{(17) {}^{2} + (12.75) {}^{2} } [/tex]

[tex] \sqrt{289 + 162.5625} [/tex]

[tex] \sqrt{451.5625} [/tex]

[tex]21.25 \: unit[/tex]

Arrange from greatest to least the regions whose populations have 9 as the power

Answers

Answer:

i dont know

Step-by-step explanation:

Based on the information given, it should be noted that the regions whose populations have 9 as the power include Africa and Asia.
Information regarding the population.
From the complete information, it can also be deduced that the regions whose populations have 8 as the power include North America, Latin America, and Caribbean.
The regions that have populations with 7 as their power of 10 include Oceania.
In conclusion, the regions whose populations have 9 as the power include Africa and Asia.

Someone please help ASAP!!! I need both of these done before 12:00!!! Giving brainliest to best answer!!! you can do it!!

Answers

Answer:

8. 6/12

9. 8/ 42

..........

Answer:6/128/42Solution:Multiply the numerator of the first fraction times the numerator of the second fraction:3•2=6Same with the denominator:4•3=12hence, the fraction is 6/12.Same with the second pair of fractions:2•4=87•6=428/42

Hope it helps.

Do comment if you have any query.

I need help with this, all answers please?

Answers

The answer is 100 not many people actually know that

Help please I need help with 15,16,17,18

Answers

For 15 its just the shape, if you draw a shape based on the dots, compare them. Like left one is a bit taller and wider.

16: for left one median is 8 i think. Right one is 9.5 i think
17: for left one, 13 is an outlier, for right one, 11.5 is outliner. You just write the beginning and ends including and not including those outliers.
18: people in group A were kids and people in group B were adults because their shoe sizes are much higher.

What is the value of this expression?

{5×(13−8)}+12÷6

Answers

[tex]\qquad\qquad\huge\underline{{\sf Answer}}[/tex]

Let's evaluate ~

[tex]\qquad \tt \dashrightarrow \: \{5 \times (13 - 8) \} + 12 \div 6[/tex]

[tex]\qquad \tt \dashrightarrow \: \{5 \times (5) \} + 12 \div 6[/tex]

[tex]\qquad \tt \dashrightarrow \: \{5 \times 5\} + 2[/tex]

[tex]\qquad \tt \dashrightarrow \:25 + 2[/tex]

[tex]\qquad \tt \dashrightarrow \:27[/tex]

given:

{5×(13−8)}+12÷6

to find:

the value of the expression.

solution:

we'll have to follow the BODMAS rule to solve this.

{5×(13−8)}+12÷6

= {5 × (5)} + 12 ÷ 6

= 25 + 2

= 27

The sixth term is 22. the common difference is 6 what is the 15th term?

Answers

Answer:

The general formulaa for an arithmetic sequence is:

a(n) = a + d(n - 1)

Step-by-step explanation:

Answer is a(n) = a + d(n - 1)

Ebony had a sum of money.
She kept ½ for herself. She decided to give the rest away to family and charity.
¾ of the money she gave away went to family.

a) What fraction of the total amount did Ebony give to charity?

a)If the amount was £200, how much money did she give to family?

Answers

Answer:  She gave a fraction of 1/4 to charity, and she gave $150 to family

Step-by-step explanation:  Ebony had a totaly of $200 dollars to start with to give away that means if she gave 3/4 of $200 to family that would mean she gave $150 dollars to her family

Now the other part of the question is how much of the total amount did Ebony give to charity now if I understand that part correctly then it wants you to give the fraction of the total which would be she gave 1/4 out of the $200 she had for family and charity which means she gave 1/4 of $200 which is $50 to charity

Hope this Helps!

What polygon is shown?

Answers

Answer:

Pentagon

Step-by-step explanation:

What remainder is represented by the synthetic division below?

A vertical line and horizontal line combine to make a L shape. There are two rows of entries within the shape. Row 1 has entries 2, 10, 1, 5. Row 2 has entries blank, negative 10, 0, negative 5. Entry negative 5 is on the outside to the left of the shape, and a third row of entries is outside and below the shape. Row 3 has entries 2, 0, 1, 0.
–5
0
1
2

Answers

Answer:

the asnwer is 0

Step-by-step explanation:

Hope it help :D

Answer:

B

Step-by-step explanation:

The answer is 0 on edge

If a bicyclist travels at 15 km/, how long will it take her to travel 50 km?
A. 6 h
B. 3.33 h
C. 450 h
D. D 0.3 h

Answers

Answer:B

Step-by-step explanation: Distance covered = speed × time

Time = Distance /speed = 50/3

anyone know this??!!!

Answers

Step-by-step explanation:

[tex] - \frac{1}{5} + \frac{1}{4} \times \frac{1}{20} [/tex]

choice 3

Select the two values of x that are roots of this equation.
x2 - 5x+ 3 = 0
-
A. X
5+ 13
=
N
IB=
B. x = 5+y87
37
2
O
C.
5 - 13
X =
2
D. X =
5 - 37
N

Answers

Answer:

A. and C.

Step-by-step explanation:

1. Plug in the values of a, b, and c into the quadratic formula:

[tex]x= \frac{-(-5)+-\sqrt{(-5)^{2}-4(1)(3) } }{2(1)}[/tex]

2. Solve the sqaure root:

[tex]x= \frac{-(-5)+-\sqrt{25-12} }{2(1)} \\\\x =\frac{-(-5)+-\sqrt{13} }{2(1)}[/tex]

3. Simplify the rest:

[tex]x=\frac{5+-\sqrt{13} }{2}[/tex]

4. Separate the solutions:

[tex]x= \frac{5+\sqrt{13} }{2} , x= \frac{5-\sqrt{13} }{2}[/tex]

A and C represent these solutions, therefore they are the anwsers.

hope this helps!

10 \frac { x ^ { 2 } } { y ^ { 2 } } - 1 - 3 \frac { y ^ { 2 } } { x ^ { 2 } }​

Answers

Answer:

[tex]\frac{(2x^{2} + y^{2}) (5x^{2} - 3^{2} }{x^{2} y^{2} }[/tex]

Step-by-step explanation:

Find the solution below.

Answer:    (5x2 + 3y2) • (2x2 + y2) ————————————————————————           x2y2

Step-by-step explanation:

    STEP 1:  y2

Simplify   ——

                  x2

Equation at the end of step 1:       (x2)        y2

 ((10•————)-1)-(3•——)

      (y2)        x2

STEP 2 :            x2

Simplify   ——

           y2

Equation at the end of step 2:         x2           3y2

 ((10 • ——) -  1) -  ———

        y2           x2

STEP 3:Rewriting the whole as an Equivalent Fraction  3.1   Subtracting a whole from a fraction Rewrite the whole as a fraction using  y2  as the denominator :         1     1 • y2

   1 =  —  =  ——————

        1       y2  

Equivalent fraction : The fraction thus generated looks different but has the same value as the whole Common denominator : The equivalent fraction and the other fraction involved in the calculation share the same denominatorAdding fractions that have a common denominator : 3.2       Adding up the two equivalent fractions Add the two equivalent fractions which now have a common denominatorCombine the numerators together, put the sum or difference over the common denominator then reduce to lowest terms if possible: 10x2 - (y2)     10x2 - y2

———————————  =  —————————

    y2             y2    

Equation at the end of step 3:  (10x2 - y2)    3y2

 ——————————— -  ———

     y2         x2

STEP 4:Trying to factor as a Difference of Squares: 4.1      Factoring:  10x2-y2 Theory : A difference of two perfect squares,  A2 - B2  can be factored into  (A+B) • (A-B)Proof :  (A+B) • (A-B) =         A2 - AB + BA - B2 =         A2 - AB + AB - B2 =          A2 - B2Note :  AB = BA is the commutative property of multiplication. Note :  - AB + AB equals zero and is therefore eliminated from the expression.Check :  10  is not a square !! Ruling : Binomial can not be factored as thedifference of two perfect squaresCalculating the Least Common Multiple : 4.2    Find the Least Common Multiple       The left denominator is :       y2       The right denominator is :       x2                   Number of times each Algebraic Factor            appears in the factorization of:    Algebraic        Factor     Left  Denominator  Right  Denominator  L.C.M = Max  {Left,Right}  x 022 y 202      Least Common Multiple:       x2y2 Calculating Multipliers : 4.3    Calculate multipliers for the two fractions     Denote the Least Common Multiple by  L.C.M     Denote the Left Multiplier by  Left_M     Denote the Right Multiplier by  Right_M     Denote the Left Deniminator by  L_Deno     Denote the Right Multiplier by  R_Deno    Left_M = L.C.M / L_Deno = x2   Right_M = L.C.M / R_Deno = y2Making Equivalent Fractions : 4.4      Rewrite the two fractions into equivalent fractionsTwo fractions are called equivalent if they have the same numeric value.

What is the first step in constructing an inscribed circle inside triangles XYZ?

Answers

Construct a perpendicular from the center point to one side of the triangle

When calculating a loan’s effective rate, if the interest compounds every two months, what value of n do you plug into your equation? a. 2 b. 0.167 c. 6 d. 60

Answers

The value of n you plug into your equation will be 6. Then the correct option is C.

What is compound interest?

Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.

When calculating a loan’s effective rate.

If the interest compounds every two months.

Then the value of n you plug into your equation will be

If the interest is compounded every two months, the interest will be applied six times every year.

Because there are 12 months in a year, the value of n that you will plug into your equation is 6, and it will be compounded every two months.

More about the compound interest link is given below.

https://brainly.com/question/25857212

The length is 2 units,the width is 5 units,and the height is 7 units

Answers

2x5x7= 70 is the answer

Place the following numbers on the number line. -2.42,-0.8, 0.33, 1.23​

Answers

Answer:

On a number line, -2.42 would be first on the left, then -0.8, 0.33, and 1.23

Step-by-step explanation:

What is the volume of the pyramid? 2.5 cm3 5 cm3 6 cm3 7.5 cm3

Answers

Answer:

the anwer is 5 cm3

Step-by-step explanation:

Answer:

5

Step-by-step explanation:

Which statement is not true about the data set shown?

Answers

The median is not 82. So option one is the answer.
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