Cash flow effect from the change in net working capital

Assignment Help Financial Management
Reference no: EM131062910

For project A, the cash flow effect from the change in net working capital is expected to be -300 dollars at time 2 and the level of net working capital is expected to be 1,600 dollars at time 2. What is the level of current liabilities for project A expected to be at time 1 if the level of current assets for project A is expected to be 6,300 dollars at time 1?

Reference no: EM131062910

Questions Cloud

What is firm pro forma times interest earned ratio : As CFO of Nile Holdings, a carpet wholesaler, you have the following information as of December 2011: Nile has an attractive investment opportunity, and to finance it, must decide whether to issue $100 million in new debt or new equity. Assume Nile r..
Organization can engage in to accomplish these goals : Suppose firm XYZ has AR (Accounts Receivable) = 500, Sales = 3000, Inventory = 300, Cost of Goods Sold = 1200, and AP (Accounts Payable) = 100. How much cash does firm XYZ save if it reduces its Days Sales Outstanding by 10 days? What are specific ac..
What would the after-tax cash flow be from equipment sale : Today, Litchfield Design purchased a piece of equipment for 82,000 dollars that will be depreciated to 14,000 dollars over 17 years using straight-line depreciation. What would the after-tax cash flow be from the equipment sale if the equipment is so..
The level of net working capital is expected : For project A, the cash flow effect from the change in net working capital is expected to be -100 dollars at time 2, the level of net working capital is expected to be 1,000 dollars at time 0, and the level of net working capital is expected to be 1,..
Cash flow effect from the change in net working capital : For project A, the cash flow effect from the change in net working capital is expected to be -300 dollars at time 2 and the level of net working capital is expected to be 1,600 dollars at time 2. What is the level of current liabilities for project A..
When portfolio is equally divided : There is a special shortcut that can be used to find the E(Rp) when a portfolio is equally divided among all investments. This can actually save us a lot of time and is accurate. What is this shortcut? Give a quick example of how it may be used.
What is the net present value of the stadium project : Fairfax Pizza sells pizza in Northern Virginia and is evaluating the stadium project, which would involve selling pizza in the baseball stadium for 2 years, starting today. Based on the following information, what is the net present value of the stad..
What is the incremental profit- project profitability : Schweser Satellites Inc. produces satellite earth stations that sell for $99,100.00 each. The firm's fixed costs, F, are $1.60 million, 65 earth stations are produced and sold each year, profits total $394,000.00; and the firm's assets (all equity fi..
What was the net income-what was the operating cash flow : During the year, the Discount Tire Company had gross sales of $1.16 million. The firm’s cost of goods sold and selling expenses were $535,000 and $225,000, respectively. They also had notes payable of $900,000. These notes carried an interest rate of..

Reviews

Write a Review

Financial Management Questions & Answers

  Measured by the standard deviation

ABC College is considering an investment in one of two common stocks to add to the employees' retirement portfolios. Given the following information, which investment is better, based upon the risk (as measured by the standard deviation) and return o..

  Determine the value of the companys equity

Milano pizza club owns three identical restaurants popular for their specialty pizzas. Each restaurant has a debt equity ratio of 40 percent and makes interest payments of $41,000 at the end of each year. The coast of the firm’s levered equity is 19 ..

  Target capital structure-what is the aftertax cost of debt

Mullineaux Corporation has a target capital structure of 63 percent common stock, 8 percent preferred stock, and 29 percent debt. Its cost of equity is 14.3 percent, the cost of preferred stock is 7.3 percent, and the cost of debt is 9 percent. The r..

  What is the stock price for each company

Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.30 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each company’s stock is 7 percent, 10 percent, and 13 percent, respectiv..

  Included in current assets

Which of the following items is NOT included in current assets?

  Reduces potential lawsuits against underwriters

All of the following are supporting arguments in favor of IPO underpricing except which one? Helps prevent the “winner’s curse.” Rewards institutions investors who share their market value opinions. Reduces potential lawsuits against underwriters. Di..

  What is the break-even rate of depreciation in try

Initial investment. The initial investment of USD 750,000 is used to purchase capital equipment. This equipment will be depreciated straight line to zero. At the end of five years, the remaining equipment will be sold for Turkish lira (TRY) 250,000. ..

  Which investment should firm choose if cost of capital

Consider the following projects, X and Y where the firm can only choose one. Project X costs $600 and has cash flows of $400 in each of the next 2 years. Project Y also costs $600, and generates cash flows of $500 and $275 for the next 2 years, respe..

  Supplier offers terms-what is the discount being offered

You place an order for 2,100 units of Good X at a unit price of $58. The supplier offers terms of 1/30, net 35. What is the discount being offered? How quickly must you pay to get the discount? If you do take the discount, how much should you remit?

  Most of us intuitively understand that a dollar required

Most of us intuitively understand that a dollar required today does not have the same value as a dollar needed (or utilized) in the future. This is due to several factors including interest rates, compounding factors, discounting factors and financia..

  Project with an expected cash inflow

Wilson, Inc., has a project with an expected cash inflow of $1 million at the end of Year 5. Wilson has a second project with an expected cash inflow of $200,000, to be received at the end of each year for the next five years. Required: If both proje..

  What is olympics after-tax cost of debt

Olympic Sports has two issues of debt outstanding. One is a 7% coupon bond with a face value of $26 million, a maturity of 15 years, and a yield to maturity of 8%. The coupons are paid annually. What is the before-tax cost of debt for Olympic? What i..

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