What is the present value of operating cash flow

Assignment Help Finance Basics
Reference no: EM131317452

A machine will produce 10000 units a year. The units are priced at $30 and have a variable cost of $7. There is a fixed cost of $50000 per year. the company pays no tax and has 0 tax rate. What is the present value of operating cash flow

Reference no: EM131317452

Questions Cloud

What is after-tax cash flow from the sale of the machinery : Your firm purchased machinery with a 7-year MACRS life for $10.60 million. The project, however, will end after 5 years. If the equipment can be sold for $5.10 million at the completion of the project, and your firm’s tax rate is 35%, what is the aft..
Investment analysis and taxation of income properties : A property produces a first year NOI of $100,000 which is expected to grow by 2% per year. If the property is expected to be sold in year 10, what is the expected sale price based on a terminal capitalization rate of 9.5% applied to the eleventh y..
Compute ershov numbers for the following expressions : Generate optimal code using two registers for each of the expressions of Exercise 8.10.1.
Four quarterly periods of compounding. : Amber Corp. has 3 million shares outstanding, each selling at $30. If Amber announces a 20% stock dividend, then the transfer from retained earnings is equal to. What is the future value of 10000 with an interest rate of 16 percent and four quarterly..
What is the present value of operating cash flow : A machine will produce 10000 units a year. The units are priced at $30 and have a variable cost of $7. There is a fixed cost of $50000 per year. the company pays no tax and has 0 tax rate. What is the present value of operating cash flow
Defend the idea that to be a genuine environmentalist : Defend the idea that to be a genuine environmentalist, you must also be a feminist. (You may not in fact agree - that's OK - but I want you to argue in favor of the idea as an exercise in critical thinking.)
Bonds are an issuance by the company : If the bonds are an issuance by the company, describe the use of the proceeds from the bond issuance. (Note: if your firm does not have bond investments or has not issued bonds, then please research an example of an aviation firm that has issued b..
What are the initial payment and initial loan balance : A borrower secures a $300,000, 15-year adjustable rate mortgage (ARM) with an initial interest rate of 2%. Payments are monthly. The interest rate will reset in two years and remain at that level for the remainder of the mortgage. Assume a reset rate..
Forecast method advantages and disadvantages respectively : From the news, you identified a trend that Mexican nominal interest rates have been substantially higher than U.S. nominal interest rates in recent years. According to Fish Effect, what do you expect inflation gap between two country’s inflation rate..

Reviews

Write a Review

Finance Basics Questions & Answers

  Why are cash flows that are connected to common stock

Why are cash flows that are connected to common stock difficult to estimate? How does this compare to those related to bonds.

  Suppose your friends employer will contribute 4400 to the

this is a classic retirement problem. a time line will help in solving it. your friend is celebrating her 35th birthday

  As the petals bike co completes plans for its new assembly

as the petals bike co. completes plans for its new assembly line of course they assemble bikes the designers have

  What is the bond price today

One year ago a $1,000 face value, 6% coupon bond was selling for $1,100. Since then, the market yield has decreased by two percentage points. The bond pays interest semiannually and now has four years to maturity. What is the bond's price today?

  What is the present value of this investment

Dynamics Telecommunications Corp. has made an investment in another company that will guarantee it a cash flow of $26,987 each year for the next five years. If the company uses a discount rate of 17 percent on its investments, what is the present ..

  At what price will the stock sell if the next expected

stock valuation. investors require a rate of return of 12 percent. at what price will the stock sell if the next

  Find effect of leverage on the value of firm

The Rivoli Corporation has no debt outstanding, and its financial position is given by the following information: The firm is planning selling bonds and simultaneously repurchasing some of its stock.

  Is it possible for s&s sales to grow at 13%

Calculate the 2013 internal growth rate and sustainable growth rate for S&S Air. What do these numbers tell you about S&S Air and its ability to grow? Explain.

  Compute the value of the average collection period

Sanders Prime Time Company has annual credit sales of $1,800,000 and accounts receivables of $210,000. Compute the value of the average collection period.

  Do the color distributions appear to be the same

Do the color distributions appear to be the same or different? Explain, using conditional probabilities.

  Decrease during business cycle expansions and increase

Risk premiums on corporate bonds are usually anticyclical; that is, they decrease during business cycle expansions and increase during recessions. Why is this so?

  Determine the number of knee replacements

Determine the number of knee replacements (in units) that particular wing must perform each month to break even. (Break-Even Point or BEP). In other words how many knee replacements must the surgeon perform each month to break-even

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