A firm has projected the following financials for a possible project: YEAR 0 1 2 3...

Question

Question

A firm has projected the following financials for a possible project: YEAR 0 1 2 3 5 4 Sales 134,994.00 134,994.00 134,994.00

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer : Cash flow for year 1 = 34347.684

Explanation

Sales	134994
Less:Cost of goods	(62673)
Gross profit	72321
Less: Selling & Administrative	(30000)
Less: Depreciation	(21318.60)
Less : Invest in NWC	(558)
Operatng Income	2044.44
Less: Tax (39%)	(7973.316)
Net Income	12471.084
Add : NWC	558
Add: Depreciation	21318.6
Cash flow from operating activity	34347.684

Add a comment

Answer 2

Similar Homework Help Questions

A firm has projected the following financials for a possible project: 3 5 2 YEAR 0...

A firm has projected the following financials for a possible project: 3 5 2 YEAR 0 1 134,994.00 134,994.00 134,994.00 134,994.00 Sales 134,994.00 62,673.00 62,673.00 62,673.00 62,673.00 Cost of Goods 62,673.00 30,000.00 30,000.00 30,000.00 30,000.00 S&A 30,000.00 21,318.60 21,318.60 21,318.60 21,318.60 21,318.60 Depreciation 558.00 558.00 558.00 558.00 558.00 1,044.00 Investment in NWC Investment in Gross PPE 106,593.00 The firm has a capital structure of 36.00% debt and 64.00% equity. The cost of debt is 10.00%, while the cost of equity...
A firm has projected the following financials for a possible project: YEAR 0 1 2 3...

A firm has projected the following financials for a possible project: YEAR 0 1 2 3 4 5 Sales 129,409.00 129,409.00 129,409.00 129,409.00 129,409.00 Cost of Goods 69,540.00 69,540.00 69,540.00 69,540.00 69,540.00 S&A 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 Depreciation 20,465.20 20,465.20 20,465.20 20,465.20 20,465.20 Investment in NWC 1,014.00 582.00 582.00 582.00 582.00 582.00 Investment in Gross PPE 102,326.00 The firm has a capital structure of 41.00% debt and 59.00% equity. The cost of debt is 9.00%, while the cost of...
Consider the following project for Dawg Incorporated: YEAR 0 1 2 3 4 5 Sales $150,000...

Consider the following project for Dawg Incorporated: YEAR 0 1 2 3 4 5 Sales $150,000 $150,000 $150,000 $150,000 $150,000 Cost of Goods $75,000 $75,000 $75,000 $75,000 $75,000 S&A $30,000 $30,000 $30,000 $30,000 $30,000 Depreciation $30,000 $30,000 $30,000 $30,000 $30,000 Investment in NWC $1,000 $500 $500 $500 $500 $5001 Investment in Gross PPE $150,000 The project will last 5 years and has the same risk as the typical Dawg Incorporated project. The firm has a capital structure of 40.00% debt...

Consider the following project for Dawg Incorporated: YEAR 0 1 2 3 4 5 Sales $150,000...

Consider the following project for Dawg Incorporated: YEAR 0 1 2 3 4 5 Sales $150,000 $150,000 $150,000 $150,000 $150,000 Cost of Goods $65,000 $65,000 $65,000 $65,000 $65,000 S&A $30,000 $30,000 $30,000 $30,000 $30,000 Depreciation $30,000 $30,000 $30,000 $30,000 $30,000 Investment in NWC $1,000 $500 $500 $500 $500 $500 Investment in Gross PPE $150,000 The project will last 5 years and has the same risk as the typical Dawg Incorporated project. The firm has a capital structure of 30.00% debt and...
Consider the following project for Dawg Incorporated: YEAR 0 1 2 3 4 5 Sales $150,000...

Consider the following project for Dawg Incorporated: YEAR 0 1 2 3 4 5 Sales $150,000 $150,000 $150,000 $150,000 $150,000 Cost of Goods $65,000 $65,000 $65,000 $65,000 $65,000 S&A $30,000 $30,000 $30,000 $30,000 $30,000 Depreciation $30,000 $30,000 $30,000 $30,000 $30,000 Investment in NWC $1,000 $500 $500 $500 $500 $500 Investment in Gross PPE $150,000 The project will last 5 years and has the same risk as the typical Dawg Incorporated project. The firm has a capital structure of 30.00% debt and...
Consider the following project for Dawg Incorporated: YEAR 0 1 2 3 4 5 Sales $150,000...

Consider the following project for Dawg Incorporated: YEAR 0 1 2 3 4 5 Sales $150,000 $150,000 $150,000 $150,000 $150,000 Cost of Goods $70,000 $70,000 $70,000 $70,000 $70,000 S&A $30,000 $30,000 $30,000 $30,000 $30,000 Depreciation $30,000 $30,000 $30,000 $30,000 $30,000 Investment in NWC $1,000 $500 $500 $500 $500 $500 Investment in Gross PPE $150,000 The project will last 5 years and has the same risk as the typical Dawg Incorporated project. The firm has a capital structure of 40.00% debt and...

Georgia Movie Company has a capital structure with 46.00% debt and 54.00% equity. The cost of...

Georgia Movie Company has a capital structure with 46.00% debt and 54.00% equity. The cost of debt for the firm is 9.00%, while the cost of equity is 15.00%. The tax rate facing the firm is 40.00% The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $3.02 million, and it also...
ABC Corporation has hired you to evaluate a new FOUR year project for the firm. The...

ABC Corporation has hired you to evaluate a new FOUR year project for the firm. The project will require the purchase of a $779,900.00 work cell. Further, it will cost the firm $58,100.00 to get the work cell delivered and installed. The work cell will be straight-line depreciated to zero with a 20-year useful life. The project will require new employees to be trained at a cost of $57,600.00. The project will also use a piece of equipment the firm...
Stevenson's Bakery is an all-equity firm that has projected perpetual EBIT of $174,000 per year. The...

Stevenson's Bakery is an all-equity firm that has projected perpetual EBIT of $174,000 per year. The cost of equity is 12.5 percent and the tax rate is 35 percent. The firm can borrow perpetual debt at 6.6 percent. Currently, the firm is considering converting to a debt–equity ratio of .84. What is the firm's levered value?

Georgia Movie Company has a capital structure with 46.00% debt and 54.00% equity. The cost of...

Georgia Movie Company has a capital structure with 46.00% debt and 54.00% equity. The cost of debt for the firm is 9.00%, while the cost of equity is 13.00%. The tax rate facing the firm is 37.00%. The firm is considering opening a new theater chain in a local college town. The project is expected to cost $12.00 million to initiate in year 0. Georgia Movie expects cash flows in the first year to be $3.11 million, and it also...

A firm has projected the following financials for a possible project: YEAR 0 1 2 3...

Homework Answers