Homework Answers
Cash flow = (Sales - costs)*(1-Tax) + Tax*Depreciation
= (290000- 80%*290000)*(1-0.34) + 0.34*25000
=$46780
Add Answer to:
A distributor of computer software instruction manuals plans to expand distribution. Annual sales are currently $250000...
6, A firm has invested $800 in a new machine that is expected to generate cash...
6, A firm has invested $800 in a new machine that is expected to generate cash flows over the next 4 years. The machine will be depreciated on a straight line basis down to zero by the end of its life. The firm projects their annual cash inflows at $650 per year and annual cash outflows at 280 per year. Assuming the tax rate of 33%, determine the firm's cash flow next year. $_____ 7, A distributor of computer software...
The Atlas Corp. of the United States exports computer software to the euro zone. Sales are...
The Atlas Corp. of the United States exports computer software to the euro zone. Sales are currently 5,000,000 units per year at the euro equivalent of $126 each. The current exchange rate is $1.1280/€ but the dollar is expected to appreciate next week by 8.64% after which it will remain unchanged for at least ten years. Accepting this forecast, Atlas Corp. faces a pricing decision in anticipation of the appreciation. It may either 1) maintain the same euro price and...
What is the annual operating cash flow (OCF) for a 10-year project that has annual sales...
What is the annual operating cash flow (OCF) for a 10-year project that has annual sales of $580,000, its variable costs are 80% of sales and has annual fixed costs of $120,000. The project requires new equipment at a cost of $30,000 and installation costs of $2,000 and a plant that costs $80,000. Depreciation is under the straight line method and the equipment has an estimated life of 10 years and the plant an estimated life of 30 years. The...
Rita Jekyll operates a sales booth in computer software trade shows, selling an accounting software package,...
Rita Jekyll operates a sales booth in computer software trade
shows, selling an accounting software package, Abacus. She
purchases the package from a software company for $160 each. Booth
space at the convention hall costs $10,000 per show.
Required
Sales at past trade shows have ranged between 400 and 600
software packages per show. Determine the average cost of sales per
unit if Ms. Jekyll sells 400, 450, 500, 550, or 600 units of Abacus
at a trade show. Use...
Question 32 Save Answ 20 points Canyon Buff Corp. is considering launch a project Pi to...
Question 32 Save Answ 20 points Canyon Buff Corp. is considering launch a project Pi to expand the production of a new construction chemical. The production line which will be placed in a warehouse that the company could have otherwise rented out for S20,000 per year. They will borrow $200,000 from Amarillo National Bank at an interest rate of 5% per annum for this project. The projected financials for the levered project in Year 1 are as follows: sales will...
Cash flow analysis (Appendix11.1) (CMA, adapted) 11.38 TabComp Ltd is a retail distributor for MZB-33 computer...
Cash flow analysis (Appendix11.1) (CMA, adapted) 11.38 TabComp Ltd is a retail distributor for MZB-33 computer hardware, and related software and support services. TabComp prepares annual sales forecasts of which the first six months for 2018 are presented here. Cash sales account for 25% of TabComp's total sales, 30% of the total sales are paid by bank credit card and the remaining 45% are on open account (TabComp's own charge accounts). The cash sales and cash from bank credit card...
AAA Corp. currently has one product, high-priced lawn mowers. AAA Corp. has decided to sell a...
AAA Corp. currently has one product, high-priced lawn mowers. AAA Corp. has decided to sell a new line of medium-priced lawn mowers. The building and machinery for producing this new line is estimated to cost $11,000,000 and it will be depreciated down to zero over 20 years using straight-line depreciation. Also, an investment today on working capital in the amount of $4,000,000 is needed. The working capital will be recovered at the end of the project. Sales for the new...
1- You are evaluating a capital project for equipment with a total installed cost of $750,000....
1- You are evaluating a capital project for equipment with a total installed cost of $750,000. The equipment has an estimated life of 30 years, with an expected salvage value at the end of the project of $50,000. The project will be depreciated via simplified straight-line depreciation method. In addition, a working capital investment of $5,000 is required. The project replaces an old piece of equipment which is currently in service and is fully depreciated, but has an expected after-tax...
1- You are a part of a finance team in a firm, and you were asked...
1- You are a part of a finance team in a firm, and you were asked by your boss to estimate the annual cash flows of a project. You estimated that the annual sales and costs of this project is $150,000 and $25,000 respectively. In order to start the project, the firm needs to invest in $300,000 in new equipment including shipping and installation, and $30,000 in working capital. The life of this asset is 3 years, and the project...
Use the following information to answer the 8 questions (filling in the blanks) that follow it....
Use the following information to answer the 8 questions (filling in the blanks) that follow it. When answering the questions, DO NOT use dollar signs, USE commas to separate thousands, DO NOT use parenthesis to denote negative numbers, USE the negative sign and place it in front of first digit of your answer when your answer is a negative number. Round to the nearest dollar (do not enter decimals). For example, if your answer is -$1,245,300.40 then enter -1,245,300 RET...
What is the annual operating cash flow (OCF) for a 10-year project that has annual sales of $580,000, its variable costs are 80% of sales and has annual fixed costs of $120,000. The project requires new equipment at a cost of $30,000 and installation costs of $2,000 and a plant that costs $80,000. Depreciation is under the straight line method and the equipment has an estimated life of 10 years and the plant an estimated life of 30 years. The...
Rita Jekyll operates a sales booth in computer software trade
shows, selling an accounting software package, Abacus. She
purchases the package from a software company for $160 each. Booth
space at the convention hall costs $10,000 per show.
Required
Sales at past trade shows have ranged between 400 and 600
software packages per show. Determine the average cost of sales per
unit if Ms. Jekyll sells 400, 450, 500, 550, or 600 units of Abacus
at a trade show. Use...
Cash flow analysis (Appendix11.1) (CMA, adapted) 11.38 TabComp Ltd is a retail distributor for MZB-33 computer hardware, and related software and support services. TabComp prepares annual sales forecasts of which the first six months for 2018 are presented here. Cash sales account for 25% of TabComp's total sales, 30% of the total sales are paid by bank credit card and the remaining 45% are on open account (TabComp's own charge accounts). The cash sales and cash from bank credit card...
AAA Corp. currently has one product, high-priced lawn mowers. AAA Corp. has decided to sell a new line of medium-priced lawn mowers. The building and machinery for producing this new line is estimated to cost $11,000,000 and it will be depreciated down to zero over 20 years using straight-line depreciation. Also, an investment today on working capital in the amount of $4,000,000 is needed. The working capital will be recovered at the end of the project. Sales for the new...
Most questions answered within 3 hours.
-
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 57 minutes ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 1 hour ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 2 hours ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 4 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 4 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 4 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 5 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 5 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 6 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 6 hours ago -
A high-pass filter consists of a 1.60 μF capacitor in series
with a 125 Ω resistor....
asked 6 hours ago -
A newly developed artificial intelligence has trouble
distinguishing hand-written numbers from hand-written alphabets.
There are pictures...
asked 6 hours ago