Texas Roks, Inc.

timer Asked: Jul 5th, 2013
account_balance_wallet $10

Question Description

Texas Roks, Inc. is considering a new quarry machine. The costs and revenues associated with the machine have been provided to you for analysis:

Cost of the new project


Installation costs


Estimated unit sales in year 1


Estimated unit sales in year 2


Estimated unit sales in year 3


Estimated sales price in year 1


Estimated sales price in year 2


Estimated sales price in year 3


Variable cost per unit


Annual fixed cost


Additional working capital needed


Depreciation method

3 years straight-line method, no salvage value

Texas Rok's tax rate


Texas Rok's cost of capital



  1. Calculate operating cash flow and the change in net working capital.
  1. Determine the NPV and IRR of the project. 
  1. Should the company accept or reject the project based on the NPV? Why?
  1. Should the company accept or reject the project based on the IRR? Why?
  1. What is your final accept or reject decision? Why?
  1. What is the payback period for this project? Would this influence your decision to accept or reject?

Submit your findings to the above questions in a Microsoft Word or Excel document.  Use an Excel document to illustrate your calculations.

Tutor Answer

School: UIUC

flag Report DMCA

Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

Similar Questions
Hot Questions
Related Tags
Study Guides

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