Initial cash flow at t=0: Purchase: -$700‚000 Shipping and installation: -$100‚000 Depreciable basis = $800‚000 Old machine after taxes = $120‚000 - ($120‚000-$80‚000)(.40) = $104‚000 Initial Cash flow = -$800‚000 + $104‚000 = -$696‚000 Depreciation: Year 1: $800‚000 * .3333 = $266‚640 Year 2: $800‚000 * .4445 = $355‚600 Year 3: $800‚000 * .1481 = $118‚480 Year 4: $800‚000 * .0741 = $59‚280 Yearly revenue change: Decrease operating expenses of $90‚000 Incremental net cash flow at t=1:
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The global flow of silver managed to redefine the social structure in many societies‚ as well as dramatically altered the basis of the economy in many European and Asian countries. Despite the economic change that came from the mass production of silver and its use as a standard currency‚ the growth of the silver industry brought as much change socially and culturally as it brought economic transformation. Many people viewed the conversion to silver being the standardized currency as a huge hindrance
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fluid is flow work. Flow Work (Flow Energy) A Flow Element Flow Work with Imaginary Piston Click to View Movie (68 kB) Work is needed to push the fluid into or out of the boundaries of a control volume if mass flow is involved. This work is called the flow work (flow energy). Flow work is necessary for maintaining a continuous flow through a control volume. Consider a fluid element of volume V‚ pressure P‚ and cross-sectional area A as shown left. The flow immediately
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for new equipment 35‚000 Cash dividends paid 8‚000 Cash paid to suppliers 18‚000 Cash balance 1/1/10 12‚000 Hint: Prepare a statement of cash flows. (SO 5) Instructions • Prepare the 2010 statement of cash flows for Damon Corporation. • Suppose you are one of Damon’s creditors. Referring to the statement of cash flows‚ evaluate Damon’s ability to repay its creditors. E1-13 The following data are derived from the 2006 financial statements of Southwest Airlines. All
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CORPORATE LIQUIDITY‚ CASH FLOW SENSITIVITY‚ AND INVESTMENT DECISION Written by: Destria Kurnianti 10/309731/PEK/15164 Ratified on 18 Januari 2012 Supervisor Prof. Marwan Asri‚ MBA‚ Ph.D INTRODUCTION Modigliani and Miller (1958)‚ in a perfect market conditions there is no relationship between investment decisions and financing decisions. Although the assumption of perfect markets is eliminated‚ the separation between investment decisions and financing
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The feeling of flow is incredibly enjoyable‚ making it highly sought after. Mind Gym says that “athletes in the zone see everything with clarity. They are relaxed‚ they perform with a quiet mind‚ with no indecision and no doubts...they are totally absorbed” (Mack and Casstevens 172). This description fits perfectly with Kotler’s three properties of flow: mental clarity‚ emotional detachment‚ and automatic nature. Another says‚ “it’s almost as if I’m floating from one place to another...purely through
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FM 2 FLOW ALONG A VENTURI TUBE Summary The objectives of the experiment is to study the validity of the Bernoulli equation and to determine the coefficient of discharge‚ Cd‚ by calibrating the venturi tube as a flow meter. To investigate the validity of the Bernoulli equation‚ the static pressure is taken at each tapping and the total head is determined for the maximum difference setting. The velocity head is calculated using the Bernoulli equation. To calculate Cd‚ the volumetric flow rate
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1st Assignment: The importance of the concept of cash-flow for the business finance Definition: Cash flow is the movement of money into or out of a business‚ an account or an investment. Normally‚ when the cash inflow is greater than the cash outflow it is a sign of a good financial situation because cash flow is essential for the survival of a business or even to any individual financial condition. If the company can meet its obligations and keep a healthy inflow of cash it has a healthy
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I. Introduction The purpose of this paper is to present and explain the statement of cash flows by incorporating the statements No. 95‚ 102 and 104 that establish standards for cash flows reporting issued by FASB[i]. FASB Statement No. 95 (FAS 95) “Statement of Cash Flows” supersedes APB Opinion No. 19‚ Reporting Changes in Financial Position‚ and requires a statement of cash flows as part of a full set of financial statements for all business enterprises[ii] in place of a statement of changes
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Cross Border Capital Flows Introduction The global crisis‚ in its evolving phases since 2007‚ has vividly demonstrated the extent to which cross border capital flows tie economies together. From the spread of the crisis from the United States to the global economy in 2008‚ to the jitters caused across the world‘s financial markets by recent tensions in the Euro Area‚ with surges of inflows into fast growing emerging markets‚ and more recently into ―safe haven‖ currencies‚ it is clear that the
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