# Need business and finance help with Cochrane, Inc.

Dec 19th, 2015
Anonymous
Category:
Accounting
Price: \$5 USD

Question description

 Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of \$2,310,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate \$2,220,000 in annual sales, with costs of \$1,210,000. The project requires an initial investment in net working capital of \$157,000, and the fixed asset will have a market value of \$182,000 at the end of the project. Assume that the tax rate is 30 percent and the required return on the project is 11 percent.

 Requirement 1: What are the net cash flows of the project for the following years? (Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Enter your answers in dollars, not millions of dollars (e.g., 1,234,567).)

 Year Cash Flow 0 \$ 1 2 3

 Requirement 2: What is the NPV of the project? (Do not round intermediate calculations.Enter your answer in dollars, not millions of dollars (e.g., 1,234,567).Round your answer to 2 decimal places (e.g., 32.16).)

 NPV \$

(Top Tutor) shahnaj53112
School: University of Maryland

Studypool has helped 1,244,100 students

Review from student
Anonymous
" Goes above and beyond expectations ! "

1827 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors