Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
P12-8 (similar to) Question Help (Related to Checkpoint 12.1) (Calculating changes in net operating working capital)...
ULUI.UOI PIU P12-8 (similar to) Question Help (Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is has an expected change in net operating income of $790,000. Tetious Dimensions has a 30 percent marginal tax rate. This project will also produce $210,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project with the Project Accounts receivable $58,000 er 1 Inventory 103,000 19 Accounts payable 69,000 19:...
(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $765,000. Tetious Dimensions has a 36 percent marginal tax rate. This project will also produce $210,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable Inventory Accounts payable $56,000 103,000 69,000 $95,000 184,000 124,000 What is the...
F aton Hop X P12-8 (similar to) (Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $795.000. Tetious Dimensions has a 31 percent marginal tax rate. This project will also produce $220.000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project with the Project Accounts receivable ΙΠΠΟΥ Accounts payable $54,000 103.000...
(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $765,000. Tetious Dimensions has a 30 percent marginal tax rate. This project will also produce $220,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable Inventory Accounts payable $54,000 101,000 67,000 $85,000 184,000 115,000 What is the...
(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $760,000. Tetious Dimensions has a 31 percent marginal tax rate. This project will also produce $190,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable Inventory Accounts payable $54,000 101,000 69,000 $88,000 177,000 117,000 What is the...
(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $765,000. Tetious Dimensions has a 32 percent marginal tax rate. This project will also produce $220,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project with the Project Accounts receivable Inventory Accounts payable $53,000 94,000 66,000 $95,000 184,000 118,000 What is the...
(Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $790 comma 000790,000. Tetious Dimensions has a 3636 percent marginal tax rate. This project will also produce $180 comma 000180,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable $51 comma 00051,000 $93 comma 00093,000 Inventory 103 comma 000103,000 181 comma...
P12-14 (similar to) is Question Help (Related to Checkpoint 12.1) (Calculating project cash flows and NPV) You are considering expanding your product line that currently consists of skateboards to include gas-powered skateboards, and you feel you can sell 9,000 of these per year for 10 years (after which time this project is expected to shut down with solar-powered skateboards taking over). The gas skateboards would sell for $130 each with variable costs of $50 for each one produced, and annual...
x P12-14 (similar to) Question Help (Related to Checkpoint 12.1) (Calculating project cash flows and NPV) You are considering expanding your product line that currently consists of skateboards to include gas-powered skateboards, and you feel you can sell 8,000 of these per year for 10 years after which time this project is expected to shut down with solar-powered skateboards taking over). The gas skateboards would sell for $120 each with variable costs of $30 for each one produced, and annual...
% P12-22 (similar to) 18 Question Help (Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 33 percent marginal tax bracket with a required rate of return or discount rate of 12 percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then, because this is somewhat of a fad product, it will be terminated....