Depreciation = Initial Cost/8 =3000000/8 = 375000
Annual Operating cash flow = (Revenue- Variable cost-Fixed Cost -
depreciation)*(1-Tax rate)+ Depreciation =(65000*41-42%*41*65000 -
460000 -375000)*(1-40%)+375000 = 801,420
Please Discuss in case of Doubt
Best
of Luck. God Bless
Please Rate Well
Operating cash flow. Huffman Systems has forecasted sales for its new home alarm systems to be...
Operating cash flow. Huffman Systems has forecasted sales for its new home alarm systems to be 65,000 units per year at $40.00 per unit The cost to produce each unit is expected to be about 40 % of the sales price The new product will have an additional $490,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $3,000,000 and will be depreciated over eight years (straight line) The company tax rate is 35%....
NPV. Huffman Systems has forecasted sales for its new home alarm systems to be 63,000 units per year at $39.00 per unit. The cost to produce each unit is expected to be about 42% of the sales price. The new product will have an additional $490,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $2,410,000 and will be depreciated over eight years (straight line). The company tax rate is 35%. What is the...
P10-14 (similar to) : Question Help NPV. Huffman Systems has forecasted sales for its new home alarm systems to be 60,000 units per year at $37.00 per unit. The cost to produce each unit is expected to be about 42% of the sales price. The new product will have an additional $490,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $2,300,000 and will be depreciated over eight years (straight line). The company tax...
осое. оог тр IL UIVU UUTIPICI NULUIE. UU, U UITP P10-12 (similar to) : Question Help Operating cash flow. Huffman Systems has forecasted sales for its new home alarm systems to be 65,000 units per year at $41.00 per unit. The cost to produce each unit is expected to be about 41% of the sales price. The new product will have an additional $480,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $2,900,000...
Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units at $22 a unit, production costs at 39% of sales price, annual fixed costs for production at $140,000, and straight-line depreciation expense of $190,000 per year. The company tax rate is 40%. What is the annual operating cash flow of the new GPS system? What is the annual operating cash flow of the new GPS system?...
Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units at $20 a unit, production costs at 37% of sales price, annual fixed costs for production at $160,000, and straight-line depreciation expense of $215,000 per year. The company tax rate is 38%. What is the annual operating cash flow of the new GPS system? What is the annual operating cash flow of the new GPS system?...
Rogers Restaurants is looking at a project with the following forecasted sales: First-year sales quantity of 31,000 with an annual growth rate of 3.5% over the next ten years. The sales price per unit is $42.00 and will grow at 2.25% per year. The production costs are expected to be 55% of the current year’s sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $2,400,000. It will be depreciated using MACRS and...
Rogers Restaurants is looking at a project with the following forecasted sales: First-year sales quantity of 31,000 with an annual growth rate of 3.5% over the next ten years. The sales price per unit is $42.00 and will grow at 2.25% per year. The production costs are expected to be 55% of the current year’s sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $2,400,000. It will be depreciated using MACRS and...
Peter's Popcorn has forecasted the following sales and costs for a new popcorn machine: annual sales of 40,000 units at $24 a unit, production costs at 35% of sales price, annual fixed costs for production at $150,000, and straight-line depreciation expense of $215,000 per year. The company tax rate is 40%. What is the annual operating cash flow of the new popcorn system?
NPV. Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 30,000, with an annual growth rate of 4.00% over the next ten years. The sales price per unit will start at $45.00 and will grow at 2.00% per year. The production costs are expected to be 55% of the current year's sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $2,100,000 It will be depreciated...