What are the incremental earnings for the project for years

Assignment Help Financial Accounting
Reference no: EM132956198

Elmdale Enterprises is deciding whether to expand its production facilities. Although? long-term cash flows are difficult to? estimate, management has projected the following cash flows for the first two years? (in millions of? dollars):

Problem a. What are the incremental earnings for this project for years 1 and? 2?? (Note: Assume any incremental cost of goods sold is included as part of operating? expenses.)

Problem b. What are the free cash flows for this project for years 1 & 2 in millions

revenue yr1 122.2m yr2- 156.9m
operating expense yr1= 46.1m yr2= 64.5m
depreciation yr1 = 26.7m yr2 = 40.8m
increase NWC yr1 = 3.8m yr2 = 8.8m
C. expenditure yr1 = 25.2m yr2 = 44.3m
M corporate tax yr1 = 21% yr2 = 21%
Incremental earnings forecast in millions

Reference no: EM132956198

Questions Cloud

Why is it important to implement training for healthcare : Why is it important to implement training for healthcare workers and law enforcement agents regarding the identification and recognition of biological agents th
Possession of biological weapons : Should there be a global code of ethics that all governments across the world must adhere to regarding the use of, detection of, and punishment for the use or p
Calculate president ownership position for both alternatives : Conrad Corporation plans to raise $8 million, Calculate the president ownership position for both alternatives. He doesn't buy any of the additional shares.
Why is such a large amount of the adaptive immune system : Why is such a large amount of the adaptive immune system localized to the mucosal tissue?
What are the incremental earnings for the project for years : What are the incremental earnings for this project for years 1 and? 2?? (Note: Assume any incremental cost of goods sold is included as part of operating?)
Develop your skills in selecting the right coding strategy : Develop your skills in selecting the right coding strategy for your study approach and in reporting the appropriate codes and categories for your study
What is the break-even quantity : Shapland Inc. has fixed operating costs of $600,000 and variable costs of $45 per unit. If sells the product for $70 per unit, what is the break-even quantity?
What are some of the advantages of entering transactions : What are some of the advantages of entering transactions in Sage 50 over using a manual accounting approach? Are there any disadvantages
What will be the credit to d capital account : D wants to buy into the partnership. D will pay $200,000 for a 10% ownership interest. What will be the credit to D's capital account

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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