What''s the operating cash flow

Assignment Help Financial Management
Reference no: EM131179706

The company is thinking about a new project. They expect to have sales of 500,000. Variable and fixed costs should be 200,000. The equipment is going to cost 600,000. It will be depreciated straight line to zero over the life of the project. They expect to dispose of the equipment for 100,000 at the end of the project. What's the after tax salvage value? What's the operating cash flow? What's the NPV?

Reference no: EM131179706

Questions Cloud

Write a paper about linear and integer programming modeling : Write a paper about Linear and integer programming modeling. The paper must (a) identify the main issues in the chosen area, (b) apply and reference new learning to the chosen area.
How do the conclusions of your literature review : How do conclusions of your literature review relate to the various specialization areas in psychology? Tie them to as many as apply from following areas: biological, personality theory, psychopathology, and applied psychology.
Identify an example of spontaneous creativity : Identify an example of spontaneous creativity. Which of the following is useful advice on conducting business across cultures with those who have limited English ability?
Calculate the balance of the fund : 2000 is deposited into a newly opened fund on January 1, 1999. Another deposit is made into the fund on July, 1 1999. On January 1, 2000, the balance in the fund is 6000. The time-weighted rate of return in 1999 is 8.0% and the dollar-weighted rate o..
What''s the operating cash flow : The company is thinking about a new project. They expect to have sales of 500,000. Variable and fixed costs should be 200,000. The equipment is going to cost 600,000. It will be depreciated straight line to zero over the life of the project. They exp..
Assume the cost of capital : Suppose that you will receive $10,000 five years from now. What is it worth today? What is it worth 3 years from today? What is it worth 10 years from today? What constant payment for the next 20 years is equivalent to receiving $10,000 five years fr..
What will happen to the bank net interest income : If a bank has 10 billion dollars of 1-year loans and 40 billion dollars of 5-year loans, which are financed by 30 billion dollars of 1-year deposits and 20 billion dollars in 5-year deposits. If interest rates increase by 1 percent every year for the..
Compute companies accounting net income : Use following to compute companies accounting net income:
Use in capital budgeting analysis : Dublin International Corporation’s marginal tax rate is 40 percent. It can issue 3 year bonds with a coupon rate of 8.5 percent and par value of $1,000.00 The bonds can be sold now at a price of $938.90 each. The underwriters will charge $23 per bond..

Reviews

Write a Review

Financial Management Questions & Answers

  Expected loss over the next year with a probability

A stock has an annual return of 11 percent and a standard deviation of 44 percent. What is the smallest expected loss over the next year with a probability of 1 percent?

  Best means of reducing or offsetting political risk

Which one of these is probably the best means of reducing or offsetting political risk?

  Prepare an amortization schedule for a three-year loan

Prepare an amortization schedule for a three-year loan of $111,000. The interest rate is 10 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?

  What will be effect on net worth if interest rates increse

Hedge Row Bank has the following balance sheet (in millions): Assets $270 Liabilities $216 Equity 54 Total $270 Total $270 The duration of the assets is 8 years and the duration of the liabilities is 6.2 years. The bank is expecting interest rates to..

  Consider binomial model-find the value of european call

Consider a binomial model S(0) = 100 and r = .01 and two possible return values m1 = .05 and m2 = −.03. Find the (time 0) value of a European call with expiry time at step 5 and strike price X = 105. Find the (time 0) value of a European put with exp..

  Hart enterprises recently paid dividend

Hart Enterprises recently paid a dividend, D0, of $2.75. It expects to have no constant growth of 25% for 2 years followed by a constant rate of 8% thereafter. The firm's required return is 10%.

  Calculate the firm earnings per share

One hundred million Shares of stock have been outstanding for the entire period. The price of Florida Tech Company stock in 20X1, 20X2, and 20X3 was $39.27, $26.10, and $11.55 respectively. Calculate the firm's Earnings per Share (EPS), and its Price..

  What was the stocks return for the missing year

You find a certain stock that had returns of 13 percent, −12 percent, 25 percent, and 21 percent for four of the last five years. The average return of the stock over this period was 12.16 percent. What was the stock’s return for the missing year?

  Internal growth rate and sustainable growth rate

Consider the results. If the chosen firm grows at its internal growth rate, increasing assets only with its retained earnings, how will this likely affect its WACC? Show calculations.

  Both firms have positive net income

Firms U and L each have the same amount of assets, and both have a basic earning power ratio of 20%. Firm U is unleveraged, i.e., it is 100% equity financed, while Firm L is financed with 50% debt and 50% equity. Firm L's debt has a before-tax cost o..

  What is the underlying factor that would cause such a change

What is the underlying factor that would cause such a change? Give an explanation based on the IFE of the forces that would cause a change in the Australian dollar.

  Non constant growth-find the unknown rate of return

Storico Co. just paid a dividend of $1.90 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent divid..

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