What is the operating cash flow

Assignment Help Financial Management
Reference no: EM13767712

Kurt's Kabinets is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $138,000 with associated costs of $74,000. The project has a 4-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 34 percent. What is the operating cash flow for this project?

Reference no: EM13767712

Questions Cloud

Explain physical address and ip address of a computer : The "ping" command is a computer network tool used to test whether a particular host is reachable across an IP network.
Difference between the present value of the settlement : A brilliant young scientist is killed in a plane crash. It is anticipated that he could have earned $240,000 a year for the next 50 years. The attorney for the plaintiff’s estate argues that the lost income should be discounted back to the present at..
Ind the percentile for the average teacher''s salary : Salaries for teachers in a particular elementary school district are normally distributed with a mean of $44,000 and a standard deviation of $6,500. We randomly survey ten teachers from that district. a.  Find the 90th percentile for an individual te..
Find the optimal size of its milk storage tank : Fuller Ice Cream Company buys 73,000 gallons of milk annually. Due to state regulations, it cannot store the milk for more than 8 days. Find the optimal size of its milk storage tank. The price of milk is $3 per gallon, and the cost of capital for Fu..
What is the operating cash flow : Kurt's Kabinets is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $138,000 with associated costs of $74,000. The project has a 4-year life. The co..
Controversy or issue concerning global warming : energy usage contributes to the greenhouse effect .A change each team member can make to reduce emissions and save energy
Difference between an account receivable and note receivable : The Brown Company sells small office equipment and fixtures on credit.  Their ending balance in Accounts Receivable for 2012 was $120,000. What is the difference between an account receivable and a note receivable? Give an example of each.
Describes assumption of the risk in a negligence case : Which best describes assumption of the risk in a negligence case? In order to recover in a products liability case based on strict liability, the plaintiff must prove that the product had a defect that
Discharge diagnoses for proper sequencing : What chronic conditions were listed in Jane Dare's history prior to her discharge diagnosis?

Reviews

Write a Review

Financial Management Questions & Answers

  How important is good governance and ethics for a firm

How important is good governance and ethics for a firm? Provide answers with examples and theoretical explanations.

  Considering investing in one of two economies

You are a risk-averse investor who is considering investing in one of two economies. The expected return and volatility of all stocks in both economies is the same. In the first economy, all stocks move together in good times all prices rise together..

  Firms marginal federal-plus-state tax rate

The president of the company you work for has asked you to evaluate the proposed acquisition of a new chromatograph for the firm’s R&D department The equipment's basic price is $190,000, and it would cost another $47,500 to modify it for special use ..

  What is the addition to retained earnings

Billy’s Exterminators, Inc., has sales of $598,000, costs of $296,000, depreciation expense of $48,000, interest expense of $34,000, a tax rate of 35 percent and paid out $69,000 in cash dividends. What is the addition to retained earnings?

  Statements relating to market efficiency and current ratio

Which of the following statements relating to Market Efficiency is most correct?  Which of the following transactions would decrease a firm’s Current Ratio?

  Change in accounting estimate

Change in accounting estimate

  Bonds in both firms are risk free-they are zero-coupon bonds

The bonds in both firms are risk free and they are zero-coupon bonds that will pay the holder principal and interest one year from today. The risk-free interest rate is 10%. An individual investor can also borrow or lend from a bank at the 10% risk-f..

  Business are setting the price on a new service

Assume that manager of a business are setting the price on a new service. Relevant data estimates: variable cost per visit: $5.00, Annual direct fixed costs: $500,000, Annually overhead allocation: $50,000, Expected annual utilization 10,000 visits i..

  Calculate the cost of purchasing the equipment

Andiola Corporation is evaluating whether to lease or purchase equipment. Its tax rate is 30 percent. If the company purchases the equipment for $1,500,000 it will depreciate it over 5 years, using straight-line depreciation.

  What are the implied interest rates

Suppose the spot price for Euro is $1.15, the futures price for delivery in 6 months is $1.1471286. Assume that the 6 month borrowing/lending rate in Euro is 0.75percent (annually, continuous compounding) and the corresponding rate in $ is 0.25percen..

  What is the component cost of debt

To help finance a major expansion, Castro Chemical Company sold a no callable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semi-annually, sells at a price of $875, and has a par value of $1,000. ..

  Composite indicator versus using simple individual indicator

What is the advantage of using a composite indicator versus using a simple individual indicator? Please be clear and provide examples

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