Proposed new project has projected sales

Assignment Help Financial Management
Reference no: EM13883251

A proposed new project has projected sales of $129,000, costs of $63,000, and depreciation of $13,200. The tax rate is 30 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) Approaches Operating cash flow EBIT + Depreciation - Taxes $ Top-down $ Tax-shield $ Bottom-up $

Reference no: EM13883251

Questions Cloud

Estimating cost of common stock from reinvested earnings : The text identifies three methods for estimating the cost of common stock from reinvested earnings (not newly issued stock): CAPM method, DCF method, and Bond-yield-plus-risk-premium method.
Compound an initial lump sum annually instead of monthly : When you compound an initial lump sum annually instead of monthly at the same nominal interest rate over the same three year period, what will happen to the future value? Same question in other words: what happens to the future value if you compound ..
The debt-assets ratio-sales and costs remained constant : Last year Rennie Industries had sales of $305,000, assets of $175,000, a profit margin of 5.3%, and an equity multiplier of 1.2. The CFO believes that the company could reduce its assets by $51,000 without affecting either sales or costs. Had it redu..
Use the appropriate divisional discount rate : Based strictly on the calculations, which proposals should be accepted or rejected. Use the appropriate divisional discount rate. The net present value provides the answer directly while the internal rate of return must be compared to the discount ra..
Proposed new project has projected sales : A proposed new project has projected sales of $129,000, costs of $63,000, and depreciation of $13,200. The tax rate is 30 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) Approaches..
Project has the cash flows-What is the IRR : A project has the following cash flows: Year Cash Flow 0 $ 40,500 1 – 19,500 2 – 30,500 What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16)) IRR % What is the NPV of this project, if the required return is 10 perce..
Small publicly traded commercial bakeries make : Sam wants to start a small commercial bakery to supply gourmet deserts to local restaurants. He believes that with his product line and his connections in the restaurant business, Sam figures that once the business matures, he and the investor should..
The analysis of proposed ambulatory surgery : Assume that your organization's chief financial officer (CFO) has just completed a presentation to the board of trustees concerning the analysis of a proposed ambulatory surgery center costing $2 million. During the presentation, the CFO indicated th..
Your investment is now worth : Two years ago, you invested $1,000 in a healthcare stock. Your return during the first year was -50 percent, while your return in the second year was +50 percent. Your investment is now worth $1,000.

Reviews

Write a Review

Financial Management Questions & Answers

  Investment in a commercial property

To tap into the above market, you have already entered into a sizeable investment in a commercial property. The currency of Denmark is Danish Kroner, or Krone, and we use DKK for it below.

  Distinguish between pure risk and speculative risk

Distinguish between pure risk and speculative risk. List and explain in detail the three kinds of pure risk. Explain the concept of Enterprise Risk Management. How does it differ with the holistic risk management approach? Why did the Harvard Busines..

  Statement regarding executive stock-lower risk free rates

Lower risk free rates results in __________ Put Option prices and ______ Call Option Prices. Which statement regarding executive stock options is correct?

  Mature companies with relatively predictable earning

If you were analyzing the consumer goods industry, for which kind of company in the industry would the constant growth model work best? Mature companies with relatively predictable earning

  Recommendation to purchase upstart software

Obsolete Computer Systems, Inc. wants to emerge as a major producer of computer software. The company has two options: Either it can purchase Upstart Software for $25m now whose products are expected to survive 5 years. As a member of Obsolete’s boar..

  Calculate all the ratios for the company

Calculate all the ratios for the company for the past three years and compare them to the appropriate industry benchmarks.

  What are separately stated items

What are separately stated items on a K-1? Why is it necessary to separate these items from ordinary income

  Activitys optimistic-most likely and pessimistic time

Given an activity's optimistic, most likely, and pessimistic time estimates of 50, 66, and 74 days respectively, compute the PERT expected activity time for this activity.

  Compute the combined worth of steves retirement assets

Steve is about to retire and wants to calculate the total worth of his retirement assets. He has a corporate pension paying $2250 at the beginning of every month. He is also entitled for Social Security benefits of $1450 at the beginning of every mon..

  Period if the interest had compounded annually

Travis invested $9,250 in an account that pays 6 percent simple interest. How much more could he have earned over a 7-year period if the interest had compounded annually?

  What would financial analyst be most justified in concluding

A firm's current ratio has steadily increased from 2009 to 2014, from 1.3 in 2011 to 3.9 in 2014. What would a financial analyst be most justified in concluding?

  About the cash conversion cycle

Primrose Corp has $16 million of sales, $1 million of inventories, $2 million of receivables, and $2 million of payables. Its cost of goods sold is 75% of sales, and it finances working capital with bank loans at an 7% rate. How much cash would be fr..

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