Calculate the operating cash flows for the new project

Assignment Help Financial Management
Reference no: EM13915424

Assume that a new project will annually generate revenues of $2,300,000 and cash expenses (including both fixed and variable costs) of $700,000, while increasing depreciation by 170,000 per year. In addition the firm’s tax rate is 33%. Calculate the operating cash flows for the new project.

Reference no: EM13915424

Questions Cloud

Receive payment : It produces its candy and sells it to distributors in May for $220,000, but it does not receive payment until June.
Does a hollywood camera make on-screen characters : Does a Hollywood camera make on-screen characters seem more charming and stunning than they really look? I was review a movie the on-screen character was lovely in the film then when i saw her honest to goodness picture she didn't quiet look what she..
Gbi employees not currently involved in the sales to cash : Assign tasks to reflect the separation of duties to each of the employees listed in the original matrix or assign tasks to other GBI employees not currently involved in the sales-to-cash process. Add any of the following roles to your new matrix that..
Molton corporation had the following stock issued : Molton Corporation had the following stock issued and outstanding at January 1, 2013:
Calculate the operating cash flows for the new project : Assume that a new project will annually generate revenues of $2,300,000 and cash expenses (including both fixed and variable costs) of $700,000, while increasing depreciation by 170,000 per year. In addition the firm’s tax rate is 33%. Calculate the ..
Income increases retained earnings : Prepare the stockholders' equity section of the balance sheet at December 31, 2011. Include a supporting schedule showing your computation of retained earnings, at the balance sheet date. (Hint: Income increases retained earnings, whereas dividends d..
Compute the year nine future value if deposits : Given an 10 percent interest rate, compute the year 9 future value if deposits of $2,700 and $3,700 are made in years 1 and 3, respectively, and a withdrawal of $1,125 is made in year 4.
Interest expense and interest paid : What was the difference between the interest expense and interest paid in 2013? How much long-term debt will mature in 2014?
What is the stocks new required rate of return : Data for Dana Industries is shown below. Now Dana acquires some risky assets that cause its beta to increase by 35%. In addition, expected inflation increases by 2.40%. What is the stock's new required rate of return?

Reviews

Write a Review

Financial Management Questions & Answers

  As general rule-the optimal capital structure

As general rule, the optimal capital structure

  What will be the loans EAR

You want to buy a car, and a local bank will lend you $30,00. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 10% with interest paid monthly. what will be the monthly loan payment? What will be the loa..

  Interest rate-consequently investors required rate of return

As interest rate and consequently investors required rate of return, change over time the __________ of outstanding bonds will change as a result.

  Project involves selling widgets-what is euro-denominated

The project involves selling widgets: you project a sales volume of 50,000 widgets per year, sales price of $20 per widget with a contribution margin of $15 per widget. The spot exchange rate is $1.50 = €1.00. The cost of capital to the Irish firm fo..

  Makers take to reduce the degree of synchronization

It has been argued that if one could perfectly synchronize a firm's cash inflows and outflows, short-term financial planning would be unnecessary. Do you agree? What actions can the firm's financial decision-makers take to reduce the degree of synchr..

  Bond equivalent yield is semi-annually compounded

What is the price of a T-Bond with exactly 24.5 years to maturity and coupons with rate 5.875% paid semi-annually? Its yield is 6.5% BEY (Bond Equivalent Yield is semi-annually compounded).

  What are the dividend payout ratios for each firm

Below are the data for two stocks, both of which have a discount rate of 10 percent: What are the dividend payout ratios for each firm? What are the expected dividend growth rates for each firm? What is the estimated stock price for each firm?

  Weighted average contribution margin per unit for lambardi

Lambardi Company sells 3 types of bags. Bag A sells for $17 and has variable cost of $9.00 per unit. Bag B sells for $12 and has variable cost of $12.00 per unit. What is the weighted average contribution margin per unit for Lambardi?­­­­­­­­­­

  Amount of interest accumulated at the time of retirement

Emily Dorsey's current salary is $76,000 per year, and she is planning to retire 16 years from now. She anticipates that her annual salary will increase by $1000 each year ( $76000 first year, $77000 second year...) and she plans to deposit 10% of he..

  Investors profit with the stock price at maturity of option

Apple call options strike $330.00 is trading at $127.50 today. Under what circumstances does the investor make a profit? Under what circumstances will the option be exercised? Draw a diagram showing the variation of the investors profit with the stoc..

  Suppose that the assets of a bank consist of 500 million of

suppose that the assets of a bank consist of 500 million of loans to bbb-rated corporations. the pd for the

  What settle price do you get a margin call

you entered into a futures contract to buy €62,500 at $1.50/€. Your initial margin was $3,750 (= 0.04 x €62,500 x $1.50/€ = 4 percent of the contract value in dollars). Your maintenance margin is $2,000 (meaning that your broker leaves you alone unti..

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