Question

(Calculating operating cash flows) The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of $2,800,000 per year. The project will also involve annual cash expenses (including both fixed and variable costs) of $800,000, while increasing depreciation by $410,000 per year. If the firm's tax rate is 35 percent, what is the project's estimated net operating profit after taxes? What is the project's annual operating cash flow? At a tax rate of 35%, the project's estimated net operating profit after taxes (NOPAT) is $ (Round to the nearest dollar.)

Answer 1

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NPV, IRR, PBP,OCFINDEX - Microsoft Excel (Product Activation Failed) View Add-Ins File Home Insert Page Layout Formulas Data Review - 2x % Cut Calibri = = = Dr General 11AA B- A Wrap Text Merge Merge & Center - Center Σ AutoSum : A Fill 2 Sort & m Find & B I U SF $ -% % 4:0 .00 . Insert Delete Format Conditional Format Formatting as Table Styles E Copy Paste Format Painter Clipboard MQ15 Cell Styles Clear Select Filter Editing Font Alignment Number Cells MN MO MP MQ MR MS MT MU MV 3 HERITAGE FARM IMPLEMENT 5 6 LESS 7 LESS 8 = 9 LESS 10 11 ADD 12 13 14 15 16 17 18 19 SALES EXPENSES DEPRECIATION EBIT TAX OPERATING PROFIT AFTER TAXES DEPRECIATION ANNUAL OPERATING CASH FLOW 2800000 800000 410000 1590000 556500 1033500 ANSWER 1 410000 1443500 ANSWER 2 20 21 O FCFARM, MSI,confidenceINDEX CURRENCY LOAN CROSS OVER HEDGING MONEY MARKET GM HPR AM TAX GROWTH SUST I CF CASH FLOW STATW ferences: EV49 Rea 0 + PREF AND DIV POLICY I 200 130% * * 90 ENG 2. B 9 24-11-2019