Operating cash flow financial staff of cairn communication

Assignment Help Financial Management
Reference no: EM13951686

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 -- $25million

Operating costs (not including depreciation) -- $12 million

Depreciation -- $5 million

Interest Expense -- 4 million

The company faces a 40% 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: EM13951686

Questions Cloud

Bond with a face value of annual coupon payments : A bond with a face value of $1,000 has annual coupon payments of $100 and was issued seven years ago. The bond currently sells for $1,085, has eight years left to maturity. This bond's ________ must be less than 10%.
Standard deviation and expected return : The stock of a technology company has an expected return of 15% and a standard deviation of 20% 10) The stock of a pharmaceutical company has an expected return of 13% and a standard deviation of 18%. A portfolio consisting of 50% invested in each st..
Effect on advertising values : Culture has an effect on advertising values. Subcultures can include groups of customers who are interested in a product. Find a competitor's advertisement or commercial on the Internet, and analyze the following in 1,500-2,000 words:
Are checking cashing businesses a boon or fraud magnets : What do you think? Are checking cashing businesses a boon or fraud magnets? Would further regulations help? If yes, what sort of new regulations?
Operating cash flow financial staff of cairn communication : 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:
Describe the role government should play in market failures : Describe the role government should play in correcting for market failures. Make sure to apply Saint Leo's core values to your analysis, remembering that responsible stewardship calls on us to be resourceful.
Marketing mix of the 4 ps : How does the company's CSR strategy fit with its marketing mix of the 4 Ps (product, place, price, and promotion)? For example, a company that has quality products may perform community giving activities such as offering pharmaceutical products to..
The efficient set of portfolios : The efficient set of portfolios
Each key participant time from ms project : Change request form. (Determine what level of changes you as an individual can make without further approval, what changes you as a student team can make, and what changes your sponsor needs to approve.)

Reviews

Write a Review

Financial Management Questions & Answers

  Preferred stock may be desirable to issue

Preferred stock may be desirable to issue for which of the following reason(s)?

  When underwriters issue securities on a best efforts basis

When underwriters issue securities on a best efforts basis, they:

  Determine the present value now of an investment

Determine the present value now of an investment of $3,000 made one year from now and an additional $3,000 made two years from now if the annual discount rate is 4 percent

  What tax savings do they receive from investment expenses

Rich and Shauna Nielson file a joint tax return, and they itemize deductions. Assume their marginal tax rate on ordinary income is 25 percent. The Nielsons incur $2,700 in miscellaneous itemized deductions, excluding investment expenses. What tax sav..

  What is the equivalent annual annuity if the discount rate

Machinery costs $1 million today and $100,000 per year to operate. It lasts for 8 years. What is the equivalent annual annuity if the discount rate is 5%? Enter your answer in dollars and round to the cent.

  Calculate the npv and irr with mitigation

A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. Calculate the NPV and IRR with mitigation.

  Appropriate price to pay for a share of common stock

You are trying to determine the appropriate price to pay for a share of common stock. If you purchase this stock, you plan to hold it for 1 year. At the end of the year you expect to receive a dividend of $5.50 and to sell the stock for $154. The app..

  Is a warrant more similar to a call option or a put option

Company Z issued bonds with detachable warrants several years ago. Each warrant allows the holder to purchase one share of stock at $30 per share. The stock has a beta of 1.3. Calculate the exercise value of the warrants if the price of the underlyin..

  What was the dividend yield for the year

The common stock of Acadia, Inc., sold for $32.90 at the beginning of the year and $33.12 at the end of the year. During the year, the stock paid $1.10 in dividends. What was the dividend yield for the year?

  Well-diversified portfolio that has an expected return

You are an investor in common stock, and you currently hold a well-diversified portfolio that has an expected return of 10%, a beta of 1.2, and a total value of $12,000. You plan to increase your portfolio by buying 1,000 shares of X at $15 a share. ..

  Government bonds-corporate bonds and municipal bonds

Please sort the level of risk, liquidity and return of that bond on the list: Government Bonds, Corporate Bonds, Municipal Bonds, Foreign Bonds and Financial bonds.

  What are the consequences of a bank

What are the consequences of a bank mistakenly pricing loans based on the historical cost of funds? Do they differ in a rising rate environment versus a falling rate environment?

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