Preferably, a financial analyst estimates cash flows for a project as
Pre-tax accounting profit
After-tax cash flow
Pre-tax cash flow
After-tax accounting profit
Preferably, a financial analyst estimates cash flows for a project a:----
b) After-tax cash flow
Preferably, a financial analyst estimates cash flows for a project as Pre-tax accounting profit After-tax cash...
Preferably, a financial analyst estimates cash flows for a project as a. accounting profits after taxes. b. cash flows before taxes. c. accounting profits before taxes. d. cash flows after taxes.
When the financial executive estimates the cash flows of a project for a capital budgeting analysis, there is a degree of uncertainty surrounding the estimates. In this context, which of the following statements is true? a) Recognizing the uncertainty surrounding the estimates, the financial executive should use the most pessimistic figures. b) Since financial executives cannot influence certain external factors, they do not have to understand how these external factors can affect the estimates. c) One way the financial executive...
A new financial analyst at Company X does the following NPV analysis. Year After-tax Cash flows PV @ 12% 0 -100000 -100,000.00 1 30000 26,978.42 2 30000 24,261.17 3 35000 25,453.86 4 35000 22,890.16 5 35000 20,584.68 6 35000 18,511.40 He reports an NPV of $38,679.69, an IRR of 10.93% and a payback period of 5.02 years. Check these results and correct his analysis if necessary.
Hogwarts Inc. is considering a project with the following cash flows: Initial cash outlay = $2,500,000 After–tax net operating cash flows for years 1 to 4 = $779,000 per year Additional after–tax terminal cash flow at the end of year 4 = $400,000 Compute the profitability index of this project if Hogwarts’ WACC is 11%.
When compiling the relevant cash flows for a project, the after-tax value of any asset sold any time during the life of the project should be treated as a - cash flow in the year of sale -change in net working capital -cash flow in the last year of the project - reduction in the cash flow for Time 0 - cash outflow at Time 0
A project is expected to generate the following cash flows: Year Project after-tax cash flows -$350 150 -25 300 The project's cost of capital is 10%, calculate this project’s MIRR.
6. Use the following after-tax cash flows for project A and B to answer the following question: (Numbers in parentheses are negative cash flows). These two projects are independent. Year Cash Flow of A Cash Flow of B 0 ($2,400) ($4,500) 1 $999 $800 2 $950 $950 3 ( $150) $950 4 $910 $800 5 $990 $900 6 ( $500) $1980 What is the approximate IRR of project A if the required rate of...
Question 9 5 pts Use the following after-tax cash flows for project A and B to answer the following question: (Numbers in parentheses are negative cash flows). These two projects are independent Year Cash Flow of A Cash Flow of B 0 ($2,400) ($4,500) 1 $999 $800 2 $950 $950 3 ($150) $950 4 $910 $800 5 $990 $900 6 ($500) $1980 Which project should be taken if the required rate of return is 10%? o Take both projects o...
Question 7 5 pts Use the following after-tax cash flows for project A and B to answer the following question: (Numbers in parentheses are negative cash flows). These two projects are independent Year Cash Flow of A Cash Flow of B 0 ($2,400) ($4,500) 1 $999 $800 2 $950 $950 3 ($150) $950 $910 $800 5 $990 $900 6 ($500) $1980 What is the approximate payback of project B if the required rate of return is 10%? 4.56 years 6...
question #8 A project is expected to generate the following cash flows: Year Project after-tax cash flows on nimi -$350 150 -25 300 The project's cost of capital is 10%, calculate this project's MIRR. Fill in the blank