What is your incremental cash flow from selling machine

Assignment Help Financial Management
Reference no: EM132056923

1. You purchased a machine for $1.01 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 35%. If you sell the machine today (after three years of depreciation) for $721,000, what is your incremental cash flow from selling the machine?

Your total incremental cash flow will be $_______ (Round to the nearest cent.)

2. This year, FCF Inc. has earnings before interest and taxes of $9,160,000, depreciation expenses of $ 1,400,000, capital expenditures of $ 1,200,000, and has increased its net working capital by $450,000.

If its tax rate is 35 %, what is its free cash flow?

The company's free cash flow is$___________(Round to two decimal places.)

Reference no: EM132056923

Questions Cloud

What is the irr of the above project : The asset will be sold for $2,000 at this end of the project. If the firm has a tax rate of 34% and a required return of 10% and an NPV of 6,004.
What is its enterprise value : If its WACC is 8% and its FCFs are expected to increase at 6% per year in perpetuity, what is its enterprise value?
What is the future value : What is the future value of $1,250.63 deposited for 3 years at an interest rate of 7%? 2. How much will $175 grow into if it is invested at 16% for 30 years?
Prepare the december income statement for canton corporation : Prepare the December 31, 2011, income statement for Canton Corporation, starting with income from continuing operations before income taxes
What is your incremental cash flow from selling machine : what is your incremental cash flow from selling the machine?
Discuss netflix business model : Discuss Netflix's business model, core products or services, growth prospects and key cost items.
Calculate the npv of the project in given case : Profound Products, Inc., is planning to market a new banana peeler. Projected sales are $80,000 per year for the first two years, declining at a rate of 25%.
How much will her savings be worth 35 years from now : Angela expects to save $500 a year and earn an average annual return of 5.2 percent. How much will her savings be worth 35 years from now?
The main principles of health informatics : Demonstrate your comprehension of the main principles of health informatics, as well as the primary applications of health informatics.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the expected return of this bond

The current price is $800 with a maturity at par in one year. What is the yield to maturity? What is the expected return of this bond?

  Provides final opportunity for you to synthesize

This forum provides a final opportunity for you to synthesize and share your learning with the class.

  What is the value of your holdings in this stock

Your required rate of return is 15 percent. Ignoring taxes, what is the value of your holdings in this stock?

  Internal rate of return and net present value

Describe the advantages and disadvantages of each method of the following: internal rate of return (IRR), net present value (NPV), and the payback method.

  What is the cost of equity using the dividend growth model

What is the cost of equity using the dividend growth model? What is the cost of preferred stock? What is the yield to maturity on the debt?

  Data calculate the after-tax cash flow

Given the following data calculate the after-tax cash flow. Sales $389,000, cost of goods sold $200,000, taxes $108,000, interest $45,000, operating expenses $67,000, depreciation $50,000, net income $39,000.

  Accumulate in your account by the time you retire

How much do you need to accumulate in your account by the time you retire? How much do you need to pay into your account in each of the 15 equal installments?

  Constant-growth dividend discount model

what is the required return applicable to the investment based on the constant-growth dividend discount model (DDM)?

  Contracts are necessary for hedging the portfolio

A portfolio is worth $24,000,000. The futures price for a Treasury note futures contract is 110 and each contract is for the delivery of bonds with a face value of $100,000. On the delivery date the duration of the bond that is expected to be cheapes..

  What is the equivalent annual cash flow of each of options

What is the equivalent annual cash flow of each of the options at a 10% discount rate?

  Investment asset

Suppose there is an investment asset that pays you 1000 each year end for the next 5 years.

  Harley-davidson-external and internal analysis

Identify and analyze the major driving forces for change in the external environment of the motorcycle industry.

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