What is the project operating cash flow for the first year

Assignment Help Financial Management
Reference no: EM131328526

Operating Cash Flow

The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service:

Projected sales $ 25 million Operating costs (not including depreciation)13 million Depreciation 6 million Interest expense 3 million

The company faces a 30% tax rate. What is the project's operating cash flow for the first year (t = 1)? Write out your answer completely. For example, 2 million should be entered as 2,000,000.

Reference no: EM131328526

Questions Cloud

Identity the supply chain process of anti retro virus drugs : Identity the supply chain process of anti retro virus drugs by NACO of GOVT OF INDIA With its comparable to planning framework and enables with four different head
Discuss about the problems and difficulties with air travel : Discuss about the  Problems and Difficulties with Air Travel.Share an experience you have had relating to problems or difficulties with air travel. What have you learned about FAA's plans to upgrade the system that might address this problem?
Why is a diverse campus important to you : Identify a few dimensions of diversity that you feel make up your identity. Keeping these dimensions in mind, what do you bring to the diversity of our UT community? Provide examples of experiences to illustrate your answer.
Review the article-formulating the evidence based practice : Review the article, "Formulating the Evidence Based Practice Question: A Review of the Frameworks," found in the Learning Resources for this week. Focus on the PICOT model for guiding the development of research questions
What is the project operating cash flow for the first year : The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $ 25 million Operating costs (not including depreciation)13 million Depreciation 6 mi..
What is your personal definition of success : What is your personal definition of success?
List of additional servers or network devices needed : List of additional servers or network devices needed to implement the network. The diagram can use the supplied floor diagrams to depict your layout of equipment within the facility.
What is the value of retirement plan : Assume that you contribute $230 per month to a retirement plan for 20 years Then you are able to increase the contribution to $460 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 50..
Straight-line depreciation and will have no salvage value : Daily Enterprises is purchasing a $ 9.8 million machine. It will cost $51,000 to transport and install the machine. The machine has a depreciable life of five years using? straight-line depreciation and will have no salvage value. You are forecasting..

Reviews

Write a Review

Financial Management Questions & Answers

  Computational rules for deducting casualty losses

When property is disposed of, what factors influence the amount of the deductible loss? Define. What is the importance, if any, of passive activity? Compare and contrast the computational rules for deducting casualty losses on personal-use property w..

  What is the companys wacc

What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

  Coupon bond pays interest annually

A 12-year, 5% coupon bond pays interest annually. The bond has a face value of $1,000. What is the change in the price of this bond (give me a percentage change) if the market yield rises to 6% from the current yield of 4.5%?

  Bond valuation and yield to maturity and future price

Callaghan Motors' bonds have 20 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 10.5%, and the yield to maturity is 11%. What is the bond's current market price? Round your answer to t..

  Cash flow amount to use initial investment in fixed assets

Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8.5 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent fac..

  Economic order quantity model to management of cash balance

One can apply the concept in the economic order quantity model to the management of cash balance. In this case, the "inventory" is the amount of cash kept in the company, and the "order cost" would be the variable cost associated with ordering cash e..

  Cash flows-what is the irr for this project

Stone Sour, Inc., has a project with the following cash flows: Year Cash Flow 0 –$ 27,500 1 11,500 2 14,500 3 10,500 The required return is 16 percent. What is the IRR for this project?

  What is the market price of face value bond

Gugenheim, Inc. offers a 7.25 percent coupon bond with annual payments. The yield to maturity is 4.025 percent and the maturity date is 10 years. What is the market price of a $1,000 face value bond?

  What is the justified forward and justified trailing P-E

Suppose you are using the Justified P/E approach to value a company. The current P/E ratio is $7. If the expected retention ratio for this company is 55%, the growth rate is 5% and the required return is 15%, what is the justified forward and justifi..

  Equity account balances-common stock-capital surplus

Unique Jewelers has the following equity account balances: common stock of $40,000 with a $1 par value, capital surplus of $260,000, and retained earnings of $411,000. The stock has a market value of $52 a share. Assume the firm does a 3-for-2 stock ..

  What is the dividend yield for each of these three stocks

You will analyze three different stocks, all of which have a required return of 20% and a most recent dividend of $3.50 per share. Stocks A, B, and C are expected to maintain constant growth rates in dividends for the foreseeable future of 12%, 0%, a..

  Antiques r us is a mature manufacturing firm

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $10.15, but management expects to reduce the payout by 4 percent per year indefinitely. If you require a return of 15 percent on this stock, what will you pay for a sha..

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