Your local athletic center is planning a $1.2 million expansion to its current facility. This cost...
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?
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$218,336.00
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$201,015.00
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$261,015.50
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$371,615.50
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$314,450.00
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Your local athletic center is planning a $1.2 million expansion
to its current facility. This cost...
Your local athletic center is planning a $1.2 million expansion to its current facility. This cost...
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 $500,000 expansion to its current facility. This cost will...
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?
Your local athletic center is planning a $500,000 expansion to its current facility. This cost will...
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
Your local athletic center is planning a $1.23 million expansion to its current facility. This cost...
Your local athletic center is planning a $1.23 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 $524,000 in additional annual sales. Additional cost is $330920, and the tax rate is 35 percent. What is the yearly depreciation? What is the operating cash flow for the first year of this project? O $61000; $118,336 O $61500; $122,509 O $61500; $147,027 O $61000; $166,667
1) A five-year project is expected to generate annual revenues of $159,000, variable costs of $72,500,...
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....
4) Franco’s athletic club is planning an expansion. The owner is either going to build a completely new building or jus...
4) Franco’s athletic club is planning an expansion. The owner is
either going to build a completely new building or just add on to
the existing facility. A new building will cost $10 million, but it
is expected to increase revenues by $2 million (before taxes) per
year for ten years. An add-on to the current facility will only
cost $500,000, but projections are that it will lead to an increase
in revenues of only $150,000 (before taxes) per year...
Organic Produce is considering a new 6-year expansion project that requires an initial fixed asset investment...
Organic Produce is considering a new 6-year expansion project that requires an initial fixed asset investment of $5.876 million. The fixed asset will be depreciated straight-line to zero over its 6-year tax life, after which time it will be worthless. The project is estimated to generate $5,328,000 in annual sales, with costs of $2,131,200. The tax rate is 32 percent. What is the annual operating cash flow for this project?
Phone Home, Inc. is considering a new 6-year expansion project that requires an initial fixed asset...
Phone Home, Inc. is considering a new 6-year expansion project that requires an initial fixed asset investment of $5.876 million. The fixed asset will be depreciated straight-line to zero over its 6-year tax life, after which time it will be worthless. The project is estimated to generate $5,328,000 in annual sales, with costs of $1,831,200. The tax rate is 32 percent. What is the annual operating cash flow for this project? Group of answer choices $2,691,210 $1,894,318 $2,418,531 $2,487,211 $2,827,210
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $...
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. If the tax rate is 21 percent, what is the OCF for this project? (Do not round intermediate calculations and enter your answer in dollars,...
Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.37 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which it will be worthles
Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.37 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which it will be worthless. The project is estimated to generate $1,780,000 in annual sales, with costs of $690,000. The tax rate is 24 percent and the required return is 11 percent. What is the project’s NPV?
Your local athletic center is planning a $1.23 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 $524,000 in additional annual sales. Additional cost is $330920, and the tax rate is 35 percent. What is the yearly depreciation? What is the operating cash flow for the first year of this project? O $61000; $118,336 O $61500; $122,509 O $61500; $147,027 O $61000; $166,667
4) Franco’s athletic club is planning an expansion. The owner is
either going to build a completely new building or just add on to
the existing facility. A new building will cost $10 million, but it
is expected to increase revenues by $2 million (before taxes) per
year for ten years. An add-on to the current facility will only
cost $500,000, but projections are that it will lead to an increase
in revenues of only $150,000 (before taxes) per year...
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. If the tax rate is 21 percent, what is the OCF for this project? (Do not round intermediate calculations and enter your answer in dollars,...
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