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Calculate the new operating leverage as follows:
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A proposed project has fixed costs of $34.709 per year. The operating cash flow at 12.000...
A proposed project has fixed costs of $38,000 per year. The operating cash flow at 7,000...
A proposed project has fixed costs of $38,000 per year. The
operating cash flow at 7,000 units is $88,000.
A proposed project has fixed costs of $38,000 per year. The operating cash flow a 7,000 units is $88,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? 1.43187 b. If units sold rise from 7,000 to 7,500, what will be the increase in operating cash flow? 10.23% 23.68% 12.17% 11.15% 8.29% c. What is the new...
A proposed project has fixed costs of $82,000 per year. The operating cash flow at 6,200...
A proposed project has fixed costs of $82,000 per year. The operating cash flow at 6,200 units is $88,400. Ignoring the effect of taxes, what is the degree of operating leverage? (Do not round intermediate calculations. Round your answer to 4 decimal places, e.g., 32.1616.) Degree of operating leverage If units sold rise from 6,200 to 6,700, what will be the new operating cash flow? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Operating...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed proje...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues $20 million Operating costs (excluding depreciation) 14 million Depreciation 4 million Interest expense 4 million The company has a 40% tax rate, and its WACC is 11%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's cash...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed projec...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues $25 million Operating costs (excluding depreciation) 17.5 million Depreciation 5 million Interest expense 5 million The company has a 40% tax rate, and its WACC is 13%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. What is the project's cash flow...
Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes...
Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income $1.000.000 300.000 700,000 200,000 500.000 75.000 425.000 127,500 $297,500 Refer to the table. The degree of operating leverage S Select one: O a. 1.56x Ob.3.33% O c. 2.22% O d. 1.40x Sales (1,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income Shares Outstanding $200,000 110,000 90,000 40.000 50.000 10,000 40,000...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1)...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues $25 million Operating costs (excluding depreciation) 17.5 million Depreciation 5 million Interest expense 5 milljon The company has a 40% tax rate, and its WACC is 13%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's cash...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1)...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues Operating costs (excluding depreciation) $20 million 14 million Depreciation 4 million Interest expense 4 million The company has a 40% tax rate, and its WACC is 13%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's cash...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1)...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues $15 million Operating costs (excluding depreciation) 10.5 million Depreciation 3 million Interest expense 3 million The company has a 40% tax rate, and its WACC is 14%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's cash...
A proposed new project has projected sales of $177,000, costs of $89,000, and depreciation of $24,600....
A proposed new project has projected sales of $177,000, costs of $89,000, and depreciation of $24,600. The tax rate is 24 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) Operating cash flow EBIT + Depreciation - Taxes Top-down Tax-shield Bottom-up
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1)...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: $20 million Sales revenues Operating costs (excluding depreciation) 14 million Depreciation 4 million Interest expense 4 million The company has a 40% tax rate, and its WACC is 14%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's cash...
A proposed project has fixed costs of $38,000 per year. The
operating cash flow at 7,000 units is $88,000.
A proposed project has fixed costs of $38,000 per year. The operating cash flow a 7,000 units is $88,000. a. Ignoring the effect of taxes, what is the degree of operating leverage? 1.43187 b. If units sold rise from 7,000 to 7,500, what will be the increase in operating cash flow? 10.23% 23.68% 12.17% 11.15% 8.29% c. What is the new...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues $20 million Operating costs (excluding depreciation) 14 million Depreciation 4 million Interest expense 4 million The company has a 40% tax rate, and its WACC is 11%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's cash...
Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income $1.000.000 300.000 700,000 200,000 500.000 75.000 425.000 127,500 $297,500 Refer to the table. The degree of operating leverage S Select one: O a. 1.56x Ob.3.33% O c. 2.22% O d. 1.40x Sales (1,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income Shares Outstanding $200,000 110,000 90,000 40.000 50.000 10,000 40,000...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues $25 million Operating costs (excluding depreciation) 17.5 million Depreciation 5 million Interest expense 5 milljon The company has a 40% tax rate, and its WACC is 13%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's cash...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues Operating costs (excluding depreciation) $20 million 14 million Depreciation 4 million Interest expense 4 million The company has a 40% tax rate, and its WACC is 13%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's cash...
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues $15 million Operating costs (excluding depreciation) 10.5 million Depreciation 3 million Interest expense 3 million The company has a 40% tax rate, and its WACC is 14%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's cash...
A proposed new project has projected sales of $177,000, costs of $89,000, and depreciation of $24,600. The tax rate is 24 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) Operating cash flow EBIT + Depreciation - Taxes Top-down Tax-shield Bottom-up
PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: $20 million Sales revenues Operating costs (excluding depreciation) 14 million Depreciation 4 million Interest expense 4 million The company has a 40% tax rate, and its WACC is 14%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's cash...
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