Calculate cash flow for the year

Assignment Help Finance Basics
Reference no: EM13263482

Cash Flows: A new project will generate sales of $74 million, costs of $42 million, and depreciation expense of $10 million in the coming year. The firm's tax rate is 35%. Calculate cash flow for the year by using all three methods listed below, and confirm that they are equal. (LO2).
Method #1: Dollars in Minus Dollars Out
(Operating cash flow = revenues - cash expenses - taxes)
Method #2: Adjusted Accounting Profits
(Operating cash flow = after tax profit + depreciation)
Method #3: Add back depreciation tax shield
(Operating cash flow = (revenues - cash expenses) x (1- tax rate) + tax rate x depreciation

Reference no: EM13263482

Questions Cloud

How blogs and social networking have altered our daily usage : Discuss how Blogs and Social Networking have altered our daily usage of the internet and the World Wide Web.
Which project should be accepted : Determine the NPV for both projects using a cost of capital of 13% 2. Determine the NPV for both projects using a cost of capital of 8% 3. At an 8% discount rate, which project should be accepted? at 13% discount rate, which project should be acce..
Design circuit to take output from each of five microphones : You've formed a band, despite advice to the contrary. Actually, the band is pretty good except for the fact that the lead singer (who owns the drum set, the microphones, and the garage where you practice) is a bit tone-deaf.
Calculate the focal length and optical power of the lens : A relaxed crystalline lens has a refractive index n=1.42 and radii of curvature R1=+10.0mm, Calculate the focal length and optical power of the lens
Calculate cash flow for the year : Cash Flows: A new project will generate sales of $74 million, costs of $42 million, and depreciation expense of $10 million in the coming year. The firm's tax rate is 35%.
What is the mass of the copper block : A copper block is removed from a 306?C oven and dropped into 1.00kg of water at 20.1?C. What is the mass of the copper block
Why the mealy synchronous sequential circuit has one input : A "Mealy" synchronous sequential circuit has one input X and one output Z. An output Z = 1 occurs every time the total number of 1's received is "divisible by 3" AND the total number of 0's received is an even number greater than zero.
What is the radius of the coils : A coil of 150 turns of wire is in the form of a circle, carries a current of 63 mA, and sits in the center of a dipole magnet, What is the radius of the coils
Why does krebs avoid complications and consequences : Why does Krebs avoid complications and consequences? How has the war changed his attitudes toward work and women? How is his hometown different from Germany and France?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate your break-even analysis for the clinic

The clinic is projected to have an average of 100 patients per month. Calculate your break-even analysis for the clinic? What is your financial recommendation?

  Management component of m and a activity

In the financial management component of M and A activity, valuing a firm extremely important given how many deals fail and how many Acquirers overpay.

  Compute the amount of monthly payment

Suppose that in 25 years you will need $500,000 for your retirement retirement is actually 25 years away, and you want to have saved $500,000.

  Minimizing lost interest and operating cost

A Corporation is planning opening lockboxes in several cities to reduce the 'float' waiting for mailed payments. In what cities should lockboxes be opened to minimize lost interest and operating cost.

  What is the company ledger balance and available balance

The manager notes that only the $33,000 payment of the 27th has cleared the bank. What is the company's ledger balance and available balance with its bank?

  Exchange rate movements

Mesa Company specializes in the production of small fancy picture frames, which are exported from the U.S. to the United Kingdom. Mesa invoices the exports in pounds and converts the pounds to dollars when they are received.

  Computing dol, dfl, and dtl

A Company with sales in 2003 of $ 102,123,000 closed out 2004 with sales of $ 112,250,000 and net operating incomes (EBIT) of $ 25,530,000 and $ 28,758,000 respectively.

  Describe financial ratios

You have been given financial statements and asked to analyze financial performance of your division. Other managers have suggested you use financial ratios in your analysis.

  Value of the firm be if the company takes on debt

What will the value of the firm be if the company takes on debt equal to 100 each cent of its unlevered value?

  Determine the companys product or service

Suppose you are attending a managerial meeting, within your publicly held corporation, to hear a proposal for a possible corporate merger with a competitor.

  Busines analysis of possible sprint-t-mobile merger

This assignment address the possible benefit of to shareholders of T-Mobile and Sprint in a possible merger of the two companies.

  Compute the contribution margin

Atlantic Airlines has a profit before taxes of $1 million flying at 80% of capacity with revenue of $100 million, fixed cost of $69 million and variable cost of $30 million.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd