What is the operating cash flow for project

Assignment Help Financial Management
Reference no: EM131336544

Loctite, Inc. is looking at a project that will require $160,000 in fixed assets and another $40,000 in net working capital. The project is expected to produce sales of $220,000 with associated costs of $140,000. The project has a 4- year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 35 percent. What is the operating cash flow for this project?

Reference no: EM131336544

Questions Cloud

Function of the demand curve : The midpoints formula is an approximation, which is also called the arc elasticity. When the function of the demand curve is known, instead of the arc elasticity, we can calculate the point elasticity. The formula of point elasticity is E = (1/slo..
What will be the change in the bond price in dollars : A corporate bond with a 6.9 percent coupon has 15 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 7.6 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. W..
Discuss about the characterizing data types : Assess the value to an interface designer, of being familiar with the seven basic tasks and create an argument for which five of the seven basic tasks are the most important to incorporate in a design.
Write about two companies one is jp morgan and another is ge : Write about two companies one is JP Morgan and another is GE, the essay is about the stock, each company write two page, and about three points: 1. what the company does 2.competitors 3. How are they going to grow.
What is the operating cash flow for project : Loctite, Inc. is looking at a project that will require $160,000 in fixed assets and another $40,000 in net working capital. The project is expected to produce sales of $220,000 with associated costs of $140,000. The project has a 4- year life. The c..
Where is the rate of change of f(x) positive : Where is the rate of change of f(x) positive? Where is it negative? Where does the rate of change of f(x) seem to be greatest?
Cool cappuccino coffee house produces : Assume that the Cool Cappuccino Coffee House produces 100 coffee drinks a night. If the Coffee House doubles both labor and capital, the firm would have to produce how many coffee drinks a night in order to experience economies of scale?
Benefits and risks of changing the packaging of product : What are the benefits and risks of changing the packaging of the Tic Tac product? Profile the Tic Tac consumer.  If Ferrero were to research changing Tic Tac packaging, how should they test the ideas
What is expected return of portfolio : You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent in Bella Co., and 30 percent in Edward Resources. What is the expected return of your portfolio if Jacob, Bella, and Edward have expected returns of 0.05, 0.13, and 0.03, respe..

Reviews

Write a Review

Financial Management Questions & Answers

  Why is financial management essential to the success

Financial Management- Why is financial management essential to the success of a company? What can potentially happen if the cash flow is not properly managed?

  What is long term rate of dividend growth expected by market

If the required rate of return on this stock is 9 percent and the current market price is $45.64, what is the long-term rate of dividend growth expected by the market?

  Dividend reinvestment plan increase amount of equity capital

If a firm repurchases its stock in the open market, the shareholders who tender the stock are subject to capital gains taxes. If you own 100 shares in a company’s stock and the company’s stock splits 2 – for – 1, then you will own 200 shares in the c..

  Reliable source of product at an economical price

BSBFIM501 - Provide a sound and reliable source of product at an economical price for use in the café and catering parts of the business - contact for issues and changes to process and budget.

  Face value coupon bond with a two-year maturity

Which has a longer Macaulay’s duration: a $1 million face value zero coupon bond with a two-year maturity and a yield of 6 percent, or a $1 million face value coupon bond with a two-year maturity that pays 6 percent coupon interest? Explain your reas..

  What is the crossover rate for these two projects

Seether, Inc., has the following two mutually exclusive projects available. What is the crossover rate for these two projects?

  According to the black-scholes-what is the options value

Black-Scholes Model Assume that you have been given the following information on Purcell Industries: Current stock price = $12 Strike price of option = $11 Time to maturity of option = 6 months Risk-free rate = 8% Variance of stock return = 0.13 d1 =..

  How can the fed cause the real interest rate

How can the Fed cause the real interest rate to increase or decrease?- Why would a decline in real interest rates cause an increase in housing prices?

  What after-tax rate of return will bank earn on the lease

If the bank depreciates the machinery on a straight-line basis over 20 years to a $0 estimated salvage value and has a 40 percent marginal tax rate, what after-tax rate of return will the bank earn on the lease?

  Solved for the cash flow in terms of the present value

You have just purchased a home by borrowing $400,000 for 30-years at a fixed APR of 3.87%. What is the monthly mortgage payment? (Hint: A mortgage is just an annuity where the borrowed amount is the present value of the annuity. So, use the annuity f..

  Construct an arbitrage example involving an asset

Construct an arbitrage example involving an asset that can be sold short, and use it to explain the cost of carry model for pricing futures.

  Stock repurchase announcement will increase stock price

Additional problem: The equity of a certain company has a market value for $3 million. It currently has 300,000 shares outstanding, and a book value of equity of $1,095,000. If management estimates that a stock repurchase announcement will increase s..

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