Operating cash flow for the project

Assignment Help Financial Management

Reference no: EM13850025

You are evaluating a project for The Tiff-any golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Tiff-any to be $480 per unit and sales volume to be 1,200 units in year 1; 1,125 units in year 2; and 1,000 units in year 3. The project has a 3-year life. Variable costs amount to $265 per unit and fixed costs are $100,000 per year. The project requires an initial investment of $141,000 in assets, which will be depreciated straight-line to zero over the 3-year project life. The actual market value of these assets at the end of year 3 is expected to be $27,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. The tax rate is 39 percent and the required return on the project is 10 percent.

What is the operating cash flow for the project in year 2?

Operating cash flow $

Reference no: EM13850025

Questions Cloud

According to oracle white paper on oracle nosql database : According to Oracle white paper on Oracle NoSQL database , NosSQL databases are sometimes characterized by the BASE acronym (Oracle, 2011).The base properties are often described when comparing the trade-offs between ACID properties of a centralized ..

Dividends are expected to grow at rate-growth rate : Hughes Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 8 percent thereafter. If the required return is 11 percent and the company just paid a $1.4..

How would distributed 2pl transaction manager : 1 (a)How would distributed 2PL transaction manager and lock manager algorithms change if a distributed computational model was used. 2.(b)Briefly compare and contrast the centralized 2PL and the distributed 2PL in terms of cost to applications

Jim develops 5 java applications a year : Jim develops 5 Java applications a year. Joe develops 10 Java applications a year. Jim gets paid $5000.00 per application, but Joe gets paid $10000.00 per application.

Operating cash flow for the project : You are evaluating a project for The Tiff-any golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Tiff-any to be $480 per unit and sales volume to be 1,200 units in year 1; 1,125 units in year 2; and 1,000 units in ..

Discuss the advantages associated with working in groups : Critically discuss the advantages and disadvantages associated with working in groups and teams within organizations

The firm needs to plow back its earnings to fuel growth : Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years, because the firm needs to plow back its earnings to fuel growth. The company will pay a $10 per share dividend in 10 years and wil..

Estimate the value of the stock : Burklin, Inc., has earnings of $18.6 million and is projected to grow at a constant rate of 4 percent forever because of the benefits gained from the learning curve. Currently, all earnings are paid out as dividends. Estimate the value of the stock

The licopenes are anticancer agents : The Licopenes are anticancer agents. -Give at least three food sources, include and discuss chemical structure, -compare to four other vitamin (included) structures,

User Account

All Pages