A project is expected to generate annual revenues of $119,300, with variable costs of $75,400, and...
A project is expected to generate annual revenues of $119,300,
with variable costs of $75,400, and fixed costs of $15,900. The
annual depreciation is $3,950 and the tax rate is 34 percent. What
is the annual operating cash flow?
Hint: Revenue - FC - VC - Depr. = EBIT. Taxes = EBIT x tax rate.
OCF = EBIT + Depreciation - Taxes (same as chapter 2).
a. $61,143
b. $28,000
c. $19,823
d. $31,950
e. $45,243
THANKS IN ADVANCE!
Homework Answers
| Revenue | 119300 |
| Less:Variable cost | 75400 |
| Less:Fixed cost | 15900 |
| Less:Depreciation | 3950 |
| EBIT | 24050 |
Taxes=EBIT*Tax rate
=24050*34%=$8177
OCF=EBIT+Depreciation-Taxes
=24050+3950-8177
=$19823.
Add Answer to:
A project is expected to generate annual revenues of $119,300,
with variable costs of $75,400, and...
A project is expected to generate annual revenues of $127,300, with variable costs of $78,400, and...
A project is expected to generate annual revenues of $127,300, with variable costs of $78,400, and fixed costs of $18,900. The annual depreciation is $4,450 and the tax rate is 35 percent. What is the annual operating cash flow?
A project is expected to generate annual revenues of $128,100, with variable costs of $78,700, and...
A project is expected to generate annual revenues of $128,100, with variable costs of $78,700, and fixed costs of $19,200. The annual depreciation is $4,500 and the tax rate is 40 percent. What is the annual operating cash flow? 8 Ο Multiple Choice Ο $34700 Ο $51,200 Ο S19,920 Ο $30,200 Ο $70,400
A five-year project is expected to generate annual revenues of $ 159,000, variable costs of $72,500,...
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?
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....
Bennett Co. has a potential new project that is expected to generate annual revenues of $248,600,...
Bennett Co. has a potential new project that is expected to generate annual revenues of $248,600, with variable costs of $138,000, and fixed costs of $56,800. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $17,000. The annual depreciation is $22,200 and the tax rate is 34 percent. What is the annual operating cash flow? A. $43,056 B. $118,148 C. $167,412 D. $76,000 E. $44,348
Intro A new project is expected to generate annual sales of $140,000 and annual costs of...
Intro A new project is expected to generate annual sales of $140,000 and annual costs of $133,000. Annual depreciation attributable to the project is $60,000. The marginal tax rate is 34%. Part 1 What is the supplemental operating cash flow in each year of operation?
Problem 10 Intro A new project is expected to generate annual sales of $130,000 and annual...
Problem 10 Intro A new project is expected to generate annual sales of $130,000 and annual costs of $123,500. Annual depreciation attributable to the project is $60,000. The marginal tax rate is 34%. Part 1 IB Attempt 1/5 for 10 pts. What is the supplemental operating cash flow in each year of operation? No decimals Submit
ABC Company is considering a new project. The project is expected to generate annual sales of...
ABC Company is considering a new project. The project is expected to generate annual sales of $91,079, variable costs of $26,515, and fixed costs of $12,494. The depreciation expense each year is $17,170 and the tax rate is 37 percent. What is the annual operating cash flow? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer...
A 5-year project is expected to generate annual sales of 9,200 units at a price of $79 per unit and a variable cost of...
A 5-year project is expected to generate annual sales of 9,200 units at a price of $79 per unit and a variable cost of $50 per unit. The equipment necessary for the project will cost $341,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $205,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price?
A 5-year project is expected to generate annual sales of 9,200 units at a price of...
A 5-year project is expected to generate annual sales of 9,200 units at a price of $79 per unit and a variable cost of $50 per unit The equipment necessary for the project will cost $341,000 and will be depreciated on a straight line basis over the life of the project. Fixed costs are $ 205,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 change in the per unit...
A project is expected to generate annual revenues of $128,100, with variable costs of $78,700, and fixed costs of $19,200. The annual depreciation is $4,500 and the tax rate is 40 percent. What is the annual operating cash flow? 8 Ο Multiple Choice Ο $34700 Ο $51,200 Ο S19,920 Ο $30,200 Ο $70,400
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?
Problem 10 Intro A new project is expected to generate annual sales of $130,000 and annual costs of $123,500. Annual depreciation attributable to the project is $60,000. The marginal tax rate is 34%. Part 1 IB Attempt 1/5 for 10 pts. What is the supplemental operating cash flow in each year of operation? No decimals Submit
A 5-year project is expected to generate annual sales of 9,200 units at a price of $79 per unit and a variable cost of $50 per unit. The equipment necessary for the project will cost $341,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $205,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price?
A 5-year project is expected to generate annual sales of 9,200 units at a price of $79 per unit and a variable cost of $50 per unit The equipment necessary for the project will cost $341,000 and will be depreciated on a straight line basis over the life of the project. Fixed costs are $ 205,000 per year and the tax rate is 34 percent. How sensitive is the operating cash flow to a $1 change in the per unit...
Most questions answered within 3 hours.
-
17) Complete the following by balancing the chemical
reactions:
(a) H2(g) + N2(g) → NH3(g)
(b)...
asked 5 seconds from now -
When performing a hypothesis test for the ratio of two
population variances, the upper critical F...
asked 5 minutes ago -
You are considering buying a call option for Bernie Bros, a
company that is building a...
asked 5 minutes ago -
How are the concepts of microevolution and macroevolution
linked?
asked 15 minutes ago -
Two vectors, given in unit vector notation, are A = 5i + 4j + 3k
and...
asked 18 minutes ago -
Let C = (2.25 m, 15 ∘ above the negative x-axis) and D = (30.6
m,...
asked 31 minutes ago -
Use the following information to answer the question:
Coupon Rate = 6% Face Value = $1,000...
asked 26 minutes ago -
Based on the assigned readings, complete this sentence: “Mutual
respect and understanding are built one _____...
asked 18 minutes ago -
complete the problem and solution paragraph below, include 2-3
causes and 2-3 solutions for them.
remember...
asked 39 minutes ago -
Find the magnetic field (in cylindrical coordinates) both inside
and outside of a very long cylindrical...
asked 23 minutes ago -
of the following statements below is/are an example of a
normative statement?
I. The water shortage...
asked 33 minutes ago -
Carbon disulfide is prepared by heating sulfur and charcoal. The
chemical equation is
S2(g)+C(s)−⇀↽−CS2(g) Kc=9.40 at...
asked 37 minutes ago