What is the operating cash flow for this project

Assignment Help Financial Management
Reference no: EM13872042

Kurt's Kabinets is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $110,000 with associated costs of $70,000. 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%. What is the operating cash flow for this project?

Reference no: EM13872042

Questions Cloud

Fixed-rate mortgage-how much is the principal payment : A homeowner takes a 30-year fixed-rate mortgage for $145,000 at 8.05 percent. After twelve years, the homeowner sells the house and pays off the remaining principal. How much is the principal payment?
Court settlement for a patent infringement : Your computer application company has won a court settlement for a patent infringement, you have a choice of taking $50,000 now or $1,000 paid monthly over a 5-year period. The current rate of return on fixed investments is an APR of 3% per year. Whi..
Chains in-house instead of purchasing them from supplier : A bicycle manufacturer currently produces 223,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2.20 a chain. If the company pays tax at a rate of 35% and the opportunity..
Discussion - creating objects : Write a 200- to 300-word short-answer response to the following: Using the example of your choice (i.e, a car, a bicycle, a puppy), explain how you would structure an object based on its attributes and behaviors
What is the operating cash flow for this project : Kurt's Kabinets is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $110,000 with associated costs of $70,000. The project has a 4-year life. The co..
Utilization of cash flow analysis is setting the bid price : Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus, the bid price represents a financial break-even level for the project..
What is percentage change in the price of these bonds : Bond J has a coupon rate of 5.1 percent. Bond S has a coupon rate of 15.1 percent. Both bonds have nine years to maturity, make semi annual payments, and have a YTM of 11.2 percent. If interest rates suddenly rise by 3 percent, what is the percentage..
Considering investing in is about to pay quarterly dividend : Jim Johansen noticed that a corporation he is considering investing in is about to pay a quarterly dividend,. The record date is Thursday, March 15. In order for Jim to receive this quarterly dividend, what is the last date he could purchase stock in..
What is amount of the dividend check the dawson couple : Jamie and Peter Dawson own 220 shares of Duke Energy Common stock. Duke energy's quarterly dividend is $0.28 per share. What is the amount of the dividend check the Dawson couple will receive for this quarter?

Reviews

Write a Review

Financial Management Questions & Answers

  What determines the price of financial instruments

What determines the price of financial instruments? Which are riskier, capital market instruments or money market instruments? Why? What are the four major functions of the Federal Reserve System? What are the main responsibilities of the FOMC?

  Using the internal rate of return-after-tax cash inflows

A company is using the internal rate of return (IRR) when evaluating projects. You have to find the IRR for the company's project. The initial outlay for the project is $450,000. The project will produce the following after-tax cash inflows:

  What is the cost of preferred stock financing

(Cost of preferred stock) The preferred stock of Gator Industries sells for $34.35 and pays $2.74 per year in dividends. What is the cost of preferred stock financing? The flotation costs adjusted initial outlay for issuing the preferred share are?

  What is the modified internal rate of return mirr how is it

bullwhat is net present value npv how is it calculated and what is the basic premise of its decision rule?bullwhat is

  What is marys current min monthly payment

Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRS:

  Explain bmws claim that under the new bonus program

Explain BMW's claim that under the new bonus program, "upper-level management could potentially lose more money than their lower-level counterparts for bad performance."

  Lower internal rate of return and profitability index

Why is it possible for investments to have a higher net present value than a competing investment but still have a lower internal rate of return and profitability index than that competitor?

  Long-term financing needed

At year-end 2013, Wallace Landscaping total assets were $1.9 million and its accounts payable were $335,000. Sales, which in 2013 were $2.8 million, are expected to increase by 30% in 2014. Total assets and accounts payable are proportional to sales,..

  Taking one-third off time it takes to repay your mortgage

Your friend tells you he has a very simple trick for taking one-third off the time it takes to repay your mortgage: Use your Christmas bonus to make an extra payment on January 1 of each year.

  Present annual yields on similar bonds

A bond with a $1,000 par value has an 8 percent annual coupon rate. It will mature in 4 years, and annual coupon payments are made at the end of each year. Present annual yields on similar bonds are 6 percent. What should be the current price?

  How would the minimum yearly cash inflow change

Breakeven cash inflows The One Ring Company, a leading producer of fine cast silver jewelry, is considering the purchase of new casting equipment that will allow it to expand its product line.  If One Ring requires a 9% return on its investment, what..

  Expected return-what must expected return on this stock be

A stock has a beta of 1.08, the expected return on the market is 10.2 percent, and the risk-free rate is 4.85 percent.

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