Homework Answers
NOPAT = EBIT(1 - t)
EBIT = 3,400,000 - 1,200,000 - 360,000
EBIT = $1,840,000
NOPAT = 1,840,000(1 - 0.37)
NOPAT = $1,159,200
Operating Cash Flow = NOPAT + Non Cash Charges
Operating Cash Flow = 1,159,200 + 360,000
Operating Cash Flow = $1,519,200
Add Answer to:
(Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected...
(Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected...
(Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $2,800,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $800,000, while increasing depreciation by $410,000 per year. If the firm's tax rate is 35 percent, what is the project's estimated net operating profit after taxes? What is the project's annual operating cash flow? At a tax rate of 35%, the project's...
(Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected...
(Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $3,300,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $1,100,000, while increasing depreciation by $440,000 per year. If the firm's tax rate is 31 percent, what is the project's estimated net operating profit after taxes? What is the project's annual operating cash flow? At a tax rate of 31%, the project's...
12-13 (Simllar to) Question Help (Calculating operating cash flows) The Heritage Farm Implement Company is considering...
12-13 (Simllar to) Question Help (Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $2,600,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $1,050,000, while increasing depreciation by $390,000 per year. If the firm's tax rate is 32 percent, what is the project's estimated net operating profit after taxes? What is the project's annual operating cash flow? At a tax...
PLEASE ANSWER ALL PARTS! P12-13 (similar to) Question Help (Calculating operating cash flows) The Heritage Farm...
PLEASE ANSWER ALL PARTS!
P12-13 (similar to) Question Help (Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $2,600,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $1,050,000, while increasing depreciation by $440,000 per year. the firm's tax rate is 31 percent, what is the project's estimated net operating proftator taxes? What is the project's annual operating cash flow? At...
?(Calculating operating cash flows?) Assume that a new project will annually generate revenues of $ 2...
?(Calculating operating cash flows?) Assume that a new project will annually generate revenues of $ 2 comma 000 comma 000$2,000,000. Cash expenses including both fixed and variable costs will be $ 500 comma 000$500,000?, and depreciation will increase by $ 280 comma 000$280,000 per year. In? addition, let's assume that the? firm's marginal tax rate is 3232 percent. Calculate the operating cash flows. What is the? firm's operating cash? flows? ?$nothing?? ?(Round to the nearest? dollar.)
Calculating Free Cash Flows
(Calculating free cash flows) You are considering new elliptical trainers and you feel you can sell 3,000 of these per year for 5 years (after which time this project is expected to shut down when it is learned that being fit is unhealthy). The elliptical trainers would sell for $1,500 each and have a variable cost of $750 each. The annual fixed costs associated with production would be $1,000,000. In addition, there would be a $7,00,000 initial expenditure associated with...
(Calculating free cash flows?) You are considering new elliptical trainers and you feel you can sell...
(Calculating free cash flows?) You are considering new elliptical trainers and you feel you can sell 4,000 of these per year for 5 years? (after which time this project is expected to shut down when it is learned that being fit is? unhealthy). The elliptical trainers would sell for ?$1,000 each and have a variable cost of ?$500 each. The annual fixed costs associated with production would be ?$1,200,000. In? addition, there would be a ?$6,000,000 initial expenditure associated with...
Finding operating and free cash flows Consider the balance sheets and selected data from the income...
Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31, 2015. b. Calculate the firm's operating cash flow (OCF) for the year ended December 31, 2015 c. Calculate the firm's free cash flow (FCF) for the year ended December 31, 2015. d. Interpret, compare and contrast your cash flow estimate in parts...
P10-11 Calculating Project Cash Flow from Assets [LO Summer Tyme, Inc., is considering a new 3-year...
P10-11 Calculating Project Cash Flow from Assets [LO Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.724 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value (salvage value) of $445,200. The project requires an initial investment in net working capital of $636,000. The project is estimated to generate $5,088,000 in annual sales, with costs of...
(Calculating project cash flows and NPV) The Guo Chemical Corporation is considering the purchase of a...
(Calculating project cash flows and NPV) The Guo Chemical Corporation is considering the purchase of a chemical analysis machine. The purchase of this machine will result in an increase in earnings before interest and taxes of $60,000 per year. The machine has a purchase price of $350,000, and it would cost an additional $8,000 after tax to install this machine correctly. In addition, to operate this machine properly, inventory must be increased by $14,000. This machine has an expected life...
(Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $2,800,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $800,000, while increasing depreciation by $410,000 per year. If the firm's tax rate is 35 percent, what is the project's estimated net operating profit after taxes? What is the project's annual operating cash flow? At a tax rate of 35%, the project's...
(Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $3,300,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $1,100,000, while increasing depreciation by $440,000 per year. If the firm's tax rate is 31 percent, what is the project's estimated net operating profit after taxes? What is the project's annual operating cash flow? At a tax rate of 31%, the project's...
12-13 (Simllar to) Question Help (Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $2,600,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $1,050,000, while increasing depreciation by $390,000 per year. If the firm's tax rate is 32 percent, what is the project's estimated net operating profit after taxes? What is the project's annual operating cash flow? At a tax...
PLEASE ANSWER ALL PARTS!
P12-13 (similar to) Question Help (Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $2,600,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $1,050,000, while increasing depreciation by $440,000 per year. the firm's tax rate is 31 percent, what is the project's estimated net operating proftator taxes? What is the project's annual operating cash flow? At...
Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31, 2015. b. Calculate the firm's operating cash flow (OCF) for the year ended December 31, 2015 c. Calculate the firm's free cash flow (FCF) for the year ended December 31, 2015. d. Interpret, compare and contrast your cash flow estimate in parts...
P10-11 Calculating Project Cash Flow from Assets [LO Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.724 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value (salvage value) of $445,200. The project requires an initial investment in net working capital of $636,000. The project is estimated to generate $5,088,000 in annual sales, with costs of...
(Calculating project cash flows and NPV) The Guo Chemical Corporation is considering the purchase of a chemical analysis machine. The purchase of this machine will result in an increase in earnings before interest and taxes of $60,000 per year. The machine has a purchase price of $350,000, and it would cost an additional $8,000 after tax to install this machine correctly. In addition, to operate this machine properly, inventory must be increased by $14,000. This machine has an expected life...
Most questions answered within 3 hours.
-
5.18 Ch 5 Warm up: People's weights (Vectors) (C++)
(1) Prompt the user to enter five...
asked 17 minutes ago -
if 14.3 g of table salt (nacl) is put into 236.0 g of water at
25...
asked 1 hour ago -
Free content. Free software. Freemium pricing models. Viral
popularity. Disappearing gatekeepers. These are the disrupters of...
asked 3 hours ago -
Consider the simple linear regression model: HARD1 =
β0 + β1*SCORE + є, where
є ~...
asked 4 hours ago -
In the Chesapeake region during the mid-17th
century how similar was the experience of an independent...
asked 6 hours ago -
. A 2.50 M stock solution was used to prepare a dilute NaOH
solution with a...
asked 7 hours ago -
Write a program that reads in a text file, infile.txt, and
prints out all the lines...
asked 9 hours ago -
Which of the following orbits have a total of zero energy (based
on the common convention)?...
asked 9 hours ago -
Find the expected count and the contribution to the chi-square
statistic for the (Group 1, No)...
asked 11 hours ago -
Suppose you are purchasing a meal and with every meal a you
receive one of 10...
asked 11 hours ago -
A 75.0 kg 0erson is riding in a car moving at 20.0 m/s when the
car...
asked 11 hours ago -
What does Δp = QR mean in words?
Pushing a viscous fluid through a pipe requires...
asked 11 hours ago