Homework Answers
Sales = units× cost per unit = 3100×37= 114700
Operating Cash flow =(Sales - fixed cost - variable cost )* (1-tax rate) + (depreciation - Salvage value)* tax rate
Operating cash flow= 114700 -25000 -(3100×11.95)* (1-0.21) + (72000/4)* 0.21= 41597.45 + 3780
Operating cash flows= 45377.45
Or
Income before taxes = Sales - fixed cost - variable cost - depreciation
Income before taxes = 114700 -25000 -37045 -18000= 34655
Operating cash flow 4 year = income before taxes * (1- tax rate) + depreciation = 34655× (1-0.21) +18000
Operating cash flow 4 year= 27377.45 + 18000= 45377.45
Add Answer to:
Soved Петр Jove Shay Hand Outfitters has a proposed project that will generate sales of 3,100...
Logan Hunting has a proposed project that will generate sales of 2,200 units annually at a...
Logan Hunting has a proposed project that will generate sales of 2,200 units annually at a selling price of $29.95 each. The fixed costs are $15,000 and the variable costs per unit are $6.95. The project requires $42,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The salvage value of the fixed assets is $5,500 and the tax rate is 21 percent. What is the...
Rock Haven has a proposed project that will generate sales of 2,025 units annually at a...
Rock Haven has a proposed project that will generate sales of 2,025 units annually at a selling price of $43 each. The fixed costs are $23,400 and the variable costs per unit are $14.35. The project requires $40,600 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. The salvage value of the fixed assets is $11,100 and the tax rate is 34 percent. What is the...
Rock Haven has a proposed project that will ente sales of 1845 annually at a selling...
Rock Haven has a proposed project that will ente sales of 1845 annually at a selling price of 531 each. The feed costs are $17.400 and the variable costs per unitare 19.55. The project requires 33 00 of foxed assets that will be depreciated on a straight line basis to arrebook value over the year of the project. The salvage value of the fixed assets is 1.700 and the tax rate is 24 percent. What is the operating cash flow?
Moving to another question will save this response Question 10 uestion 10 Rock Haven has a...
Moving to another question will save this response Question 10 uestion 10 Rock Haven has a proposed project that will generate sales of 1,845 units annually at a selling price of 531 each. The fixed costs are $17.400 and the variable costs per un are 1955. The project requires of fixed assets that will be depreciated on a straight-line basis to a zero book value over the year life of the project. The salvage value of the feed is 700...
Question or uestion 9 Machine Works is considering a project that will produce sales of $49.400...
Question or uestion 9 Machine Works is considering a project that will produce sales of $49.400 and have costs of $28,100. Tes will be $4.900 and the depreciation expense wat 22.00. A $2,300 is required for networking capital. What is the project's operating cash flow? c ah day of Moving to another question will save this response Question 10 uestion 10 Rock Haven has a proposed project that will generate sales of 1,845 units annually at a selling price of...
A proposed expansion project is expected to increase sales by $74,300 and increase cash expenses by...
A proposed expansion project is expected to increase sales by $74,300 and increase cash expenses by $46,900. The project will require $52,800 of fixed assets that will be depreciated using straight-line depreciation to a zero book value over the five-year life of the project. The store has a marginal tax rate of 23 percent. What is the operating cash flow of the project using the tax shield approach? Ignore bonus depreciation. $22,800.10 $11,114.40 $17,916.60 $23,526.80 $14,098.20
Valerie's Veggies has a proposed project that requires an initial cash outlay of $75,000 for equipment...
Valerie's Veggies has a proposed project that requires an initial cash outlay of $75,000 for equipment and an additional cash outlay of $25,000 in Year 1 to cover operating costs. During Years 2 through 4, the project will generate cash inflows of $50,000 a year. What is the net present value of this project at a discount rate of 12.2 percent? Multiple Choice points (8 01:47:08 $8,851.67 $7,441.33 $9,432.42 $53,948.34 $9,385.06
9. Custom Tailored Shirts is a specialty retailer offering T-shirts, sweatshirts, and caps. Its most recent...
9. Custom Tailored Shirts is a specialty retailer offering T-shirts, sweatshirts, and caps. Its most recent annual sales consisted of $21,000 of T-shirts, $18,000 of sweatshirts, and $2,900 of caps. The company is adding polo shirts to the lineup and projects that this addition will result in sales next year of $18,000 of T-shirts, $16,000 of sweatshirts, $11,500 of Polo shirts, and $2,100 of caps. What sales amount should be used when evaluating the Polo shirt project? 10. British Metals...
12-9. Answer each independent question, (a) through (e), below. a. Project A costs $7,500 and will generate annual after...
12-9. Answer each independent question, (a) through (e),
below.
a. Project A costs $7,500 and will generate annual after-tax net
cash inflows of $3,100 for 5 years. What is the payback period for
this investment under the assumption that the cash inflows occur
evenly throughout the year? (Round your answer to 2 decimal
places.)
b. Project B costs $7,500 and will generate after-tax cash
inflows of $1,000 in year 1, $1,900 in year 2, $3,300 in year 3,
$2,900 in...
A business corporation is considering a new three year project that requires an initial fixed asset...
A business corporation is considering a new three year project that requires an initial fixed asset investment of $5.6 million. The fixed asset will be depreciated straight-line to zero over a 4 year life. The project is estimated to generate $3 million in annual sales with variable costs of $700,000 and fixed costs of $300,000. If the tax rate is 25%. Suppose the project requires an initial investment in net working capital of $500,000 and the fixed assets will be...
Logan Hunting has a proposed project that will generate sales of 2,200 units annually at a selling price of $29.95 each. The fixed costs are $15,000 and the variable costs per unit are $6.95. The project requires $42,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The salvage value of the fixed assets is $5,500 and the tax rate is 21 percent. What is the...
Rock Haven has a proposed project that will ente sales of 1845 annually at a selling price of 531 each. The feed costs are $17.400 and the variable costs per unitare 19.55. The project requires 33 00 of foxed assets that will be depreciated on a straight line basis to arrebook value over the year of the project. The salvage value of the fixed assets is 1.700 and the tax rate is 24 percent. What is the operating cash flow?
Moving to another question will save this response Question 10 uestion 10 Rock Haven has a proposed project that will generate sales of 1,845 units annually at a selling price of 531 each. The fixed costs are $17.400 and the variable costs per un are 1955. The project requires of fixed assets that will be depreciated on a straight-line basis to a zero book value over the year life of the project. The salvage value of the feed is 700...
Question or uestion 9 Machine Works is considering a project that will produce sales of $49.400 and have costs of $28,100. Tes will be $4.900 and the depreciation expense wat 22.00. A $2,300 is required for networking capital. What is the project's operating cash flow? c ah day of Moving to another question will save this response Question 10 uestion 10 Rock Haven has a proposed project that will generate sales of 1,845 units annually at a selling price of...
Valerie's Veggies has a proposed project that requires an initial cash outlay of $75,000 for equipment and an additional cash outlay of $25,000 in Year 1 to cover operating costs. During Years 2 through 4, the project will generate cash inflows of $50,000 a year. What is the net present value of this project at a discount rate of 12.2 percent? Multiple Choice points (8 01:47:08 $8,851.67 $7,441.33 $9,432.42 $53,948.34 $9,385.06
12-9. Answer each independent question, (a) through (e),
below.
a. Project A costs $7,500 and will generate annual after-tax net
cash inflows of $3,100 for 5 years. What is the payback period for
this investment under the assumption that the cash inflows occur
evenly throughout the year? (Round your answer to 2 decimal
places.)
b. Project B costs $7,500 and will generate after-tax cash
inflows of $1,000 in year 1, $1,900 in year 2, $3,300 in year 3,
$2,900 in...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago