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Homework Answers
| Time line | 3 | ||||
| Cost of new machine | |||||
| =Initial Investment outlay | |||||
| 3 years MACR rate | 14.81% | ||||
| Unit sales | 8500 | ||||
| Profits | 104125 | ||||
| Fixed cost | -35000 | ||||
| -Depreciation | -14069.5 | ||||
| =Pretax cash flows | 55055.5 | ||||
| -taxes | 35786.075 | ||||
| +Depreciation | 14069.5 | ||||
| =after tax operating cash flow | 49855.575 | ||||
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Please help and explain how to do this question
Bad Company has a new 4-year project...
Bad Company has a new 4-year project that will have annual sales of 7,900 units. The...
Bad Company has a new 4-year project that will have annual sales of 7,900 units. The price per unit is $19.40 and the variable cost per unit is $7.15. The project will require fixed assets of $89,000, which will be depreciated on a 3-year MACRS schedule. The annual depreciation percentages are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. Fixed costs are $29,000 per year and the tax rate is 35 percent. What is the operating cash flow...
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Bad Company has a new 4-year project that will have annual sales of 7,900 units. The price per unit is $19.40 and the variable cost per unit is $7.15. The project will require fixed assets of $89,000, which will be depreciated on a 3-year MACRS schedule. The annual depreciation percentages are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. Fixed costs are $29,000 per year and the tax rate is 35 percent. What is the operating cash flow...
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Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $173,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. The project will have annual sales of $110,000, variable costs of $27,700, and fixed costs of $12,300. The project will also require net working capital of $2,900 that will be returned at the end of the project....
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