Homework Answers
| Time line | 0 | 1 | |
| Cost of new machine | -140000 | ||
| =Initial Investment outlay | -140000 | ||
| Sales | 90000 | ||
| Profits | Sales-variable cost | 55000 | |
| -Depreciation | Cost of equipment/no. of years | -14000 | |
| =Pretax cash flows | 41000 | ||
| -taxes | =(Pretax cash flows)*(1-tax) | 27060 | |
| +Depreciation | 14000 | ||
| =after tax operating cash flow | 41060 | ||
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Jefferson & Sons is evaluating a project that will increase annual sales by $90,000 and annual...
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Jefferson & Sons is evaluating a project that will increase annual sales by $450,000 and annual costs by $270,000. The project will initially require $130,000 in fixed assets that will be depreciated straight-line to a zero book value over the 5 year life of the project. The applicable tax rate is 40 percent. The annual operating cash flow for this project is $___. Round it to a whole dollar.
Jefferson & Sons is evaluating a project that will increase annual sales by $70,000 and annual...
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al text of ng the tax swed approach book Was d. Mankind Traders is considering a...
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King Nothing is evaluating a new 6-year project that will have annual sales of $390,000 and...
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The Lumber Yard is considering adding a new product line that is expected to increase annual...
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al text of ng the tax swed approach book Was d. Mankind Traders is considering a project that will produce sales of RM28) increase cash expenses by RM17,500 11 the project is implemented, taxes will increase by RM3,000. The additional depreciation expense will be RM60. An initial cash outlay of RM1,400 is required for networking capital. Find the amount of the operating cash flow using the top-down approach. 3 marks) Aish Berhas is evaluating a project that will increase annual...
King Nothing is evaluating a new 6-year project that will have annual sales of $390,000 and costs of $272,000. The project will require fixed assets of $490,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 34 percent. What is the operating cash flow for Year 3? points Multiple Choice eBook • $109,867 Ask...
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