1) A five-year project is expected to generate annual revenues of $159,000, variable costs of $72,500, and fixed costs of $15,000. The annual depreciation is $19,500 and the tax rate is 21 percent. What is the annual operating cash flow?
2) Your local athletic center is planning a $1.2 million expansion to its current facility. This cost will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $745,000 in additional annual sales. Variable costs are 39* percent of sales, the annual fixed costs are $140,000, and the tax rate is 21 percent. What is the operating cash flow for the first year of this project?
1)
Operating cash flow =(Sales - variables costs - fixed costs - depreciation)(1 - tax) + depreciation
Operating cash flow =(159,000 - 72,500 - 15,000 - 19,500)(1 - 0.21) + 19,500
Operating cash flow = 41,080 + 19,500
Operating cash flow = $60,580
2)
Annual depreciation = 1,200,000 / 20 = 60,000
Variable costs = 0.39 * 745,000 = 290,550
Operating cash flow =(Sales - variables costs - fixed costs - depreciation)(1 - tax) + depreciation
Operating cash flow =(745,000 - 290,550 - 140,000 - 60,000)(1 - 0.21) + 60,000
Operating cash flow = 201,015.5 + 60,000
Operating cash flow = $261,015.50
1) A five-year project is expected to generate annual revenues of $159,000, variable costs of $72,500,...
A five-year project is expected to generate annual revenues of $ 159,000, variable costs of $72,500, and fixed costs of $15,000. The annual depreciation is $19,500 and the tax rate is 21 percent. What is the annual operating cash flow?
Your local athletic center is planning a $1.2 million expansion to its current facility. This cost will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $745,000 in additional annual sales. Variable costs are 39* percent of sales, the annual fixed costs are $140,000, and the tax rate is 21 percent. What is the operating cash flow for the first year of this project?
Your local athletic center is planning a $1.2 million expansion to its current facility. This cost will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $745,000 in additional annual sales. Variable costs are 39* percent of sales, the annual fixed costs are $140,000, and the tax rate is 21 percent. What is the operating cash flow for the first year of this project? $218,336.00 $201,015.00 $261,015.50 $371,615.50 $314,450.00
A project is expected to generate annual revenues of $127,300, with variable costs of $78,400, and fixed costs of $18,900. The annual depreciation is $4,450 and the tax rate is 35 percent. What is the annual operating cash flow?
Your local athletic center is planning a $500,000 expansion to its current facility. This cost will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $175,000 in additional annual sales. Variable costs are 32 percent of sales, the annual fixed costs are $40,000, and the tax rate is 21 percent. What is the operating cash flow for the first year of this project?
A project is expected to generate annual revenues of $128,100, with variable costs of $78,700, and fixed costs of $19,200. The annual depreciation is $4,500 and the tax rate is 40 percent. What is the annual operating cash flow? 8 Ο Multiple Choice Ο $34700 Ο $51,200 Ο S19,920 Ο $30,200 Ο $70,400
A project is expected to generate annual revenues of $119,300, with variable costs of $75,400, and fixed costs of $15,900. The annual depreciation is $3,950 and the tax rate is 34 percent. What is the annual operating cash flow? Hint: Revenue - FC - VC - Depr. = EBIT. Taxes = EBIT x tax rate. OCF = EBIT + Depreciation - Taxes (same as chapter 2). a. $61,143 b. $28,000 c. $19,823 d. $31,950 e. $45,243 THANKS IN ADVANCE!
Your local athletic center is planning a $500,000 expansion to its current facility. This cost will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $175,000 in additional annual sales. Variable costs are 32 percent of sales, the annual fixed costs are $40,000, and the tax rate is 21 percent. What is the operating cash flow for the first year of this project? Multiple Choice $62,410.00 $99,260.00 $67,660.00 $42,660.00 $31,450.00
A 5-year project is expected to generate annual sales of 9,200 units at a price of $79 per unit and a variable cost of $50 per unit. The equipment necessary for the project will cost $341,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $205,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price?
A 5-year project is expected to generate annual sales of 9,200 units at a price of $79 per unit and a variable cost of $50 per unit The equipment necessary for the project will cost $341,000 and will be depreciated on a straight line basis over the life of the project. Fixed costs are $ 205,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 change in the per unit...