Sales estimates and macrs depreciation allowance percentages

Assignment Help Financial Accounting

Reference no: EM13826165

The Blue Lagoon is considering a project with a five-year life. The project requires $110,000 of fixed assets that are classified as five-year property for MACRS. Variable costs equal 71 percent of sales, fixed costs are $9,600, and the tax rate is 35 percent. What is the operating cash flow for year 4 given the following sales estimates and MACRS depreciation allowance percentages?

Reference no: EM13826165

Questions Cloud

Report on the role of quality in business integration : Write a report on the role of quality in business integration at Samsung Corporation

Report on consumer behavior for blackberry : Report On Consumer Behavior For Blackberry

Calculate the compound amount for investment : Lulu's Bath Works purchases towels with an invoice of $12,456, and terms of sale of 5/10 n/30. What is the net amount due on the order if a partial payment of $2,500 is made on the 10th day. Tony invests $7,500 at 12% interest, quarterly for 11 years..

The strategy of monetary policy : Describe, in general terms, the strategy of monetary policy, explaining how monetary policy tools are used to achieve the goals of monetary policy. What intermediate stages are important in going from tools to goals? What are the links between differ..

Sales estimates and macrs depreciation allowance percentages : The Blue Lagoon is considering a project with a five-year life. The project requires $110,000 of fixed assets that are classified as five-year property for MACRS. Variable costs equal 71 percent of sales, fixed costs are $9,600, and the tax rate is 3..

Sterling bay tourism development report : Sterling Bay Tourism Development Report

Describe the strategy of inflation targeting : Describe the strategy of inflation targeting. Why have many countries begun to use this strategy instead of targeting money growth? What are the advantages and disadvantages of inflation targeting?

Conceptual analysis of real options : The destruction that Hurricane Katrina brought to the Gulf Coast in 2005 devastated the city of New Orleans as well as the Mississippi Gulf Coast. The burgeoning casino gambling industry along the Mississippi coast was nearly destroyed. CGC Corporati..

Recommending balanced scorecard to bp board : Barrel Products Plc (BP) is an international energy company, providing its customers with fuel for transportation, energy for heat and light, and petrochemical products for everyday items.

User Account

All Pages