What is the annual operating cash flow for a 10 year project that has annual sales...

What is the annual operating cash flow for a 10 year project that has annual sales of 590,000, its variable costs are 80% of sales and has annual fixed costs of $100,000. The project requires new equipment at a cost of 20,000 and an instulation cost of $4,000 and a plant that costs $100,000. Depreciation is under the straight line method and the equipment has an estimated life of 10 years and plant estimated life of 30 years. The tax rate is 40% and the discounting rate is 10%.

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 month ago

Next > < Previous

Related Solutions

What is the operating cash flow (OCF) for year 3 of the hair salon project that...

What is the operating cash flow (OCF) for year 3 of the hair salon project that Yellow Sand Industrial should use in its NPV analysis of the project? Yellow Sand Industrial operates a(n) medical clinic. The firm is evaluating the hair salon project, which would involve opening a hair salon. During year 3, the hair salon project is expected to have relevant revenue of 602,400 dollars, relevant variable costs of 203,700 dollars, and relevant depreciation of 97,000 dollars. In addition,...

What is the operating cash flow for year 4 of project A that Platinum Water Banking...

What is the operating cash flow for year 4 of project A that Platinum Water Banking should use in its NPV analysis of the project? The tax rate is 10 percent. During year 4, project A is expected to have relevant revenue of 76,000 dollars, relevant variable costs of 25,000 dollars, and relevant depreciation of 11,000 dollars. In addition, Platinum Water Banking would have one source of fixed costs associated with the project A. Yesterday, Platinum Water Banking signed a...

A project has annual cash flow of $8000 for first 10 years and $11000 for next...

A project has annual cash flow of $8000 for first 10 years and $11000 for next 10 years. The company’s WACC is 10% and IRR is 14%. What is project’s payback and NPV

A project has annual cash flow of $8000 for first 10 years and $11000 for next...

A project has annual cash flow of $8000 for first 10 years and $11000 for next 10 years. The company’s WACC is 10% and IRR is 14%. What is project’s payback and NPV? Please show formula. Thanks

Cash flow series Annual Cash Flow ($ per year) Annual Cash Flow ($ per year) Annual...

Cash flow series Annual Cash Flow ($ per year) Annual Cash Flow ($ per year) Annual Cash Flow ($ per year) Year Prob = 0.3 Prob = 0.22 Prob = 0.48 0 –5000 –6000 –4000 1 1000 500 3100 2 1000 1500 1200 3 1000 2000 100 Determine the expected present worth of the following cash flow series if each series may be realized with the probability shown at the head of each column. Let i = 20% per year....

HW15-4) What is the operating cash flow for year 3 of project A that Green Forest...

HW15-4) What is the operating cash flow for year 3 of project A that Green Forest Media should use in its NPV analysis of the project? The tax rate is 25 percent. During year 3, project A is expected to have relevant revenue of 78,000 dollars, relevant variable costs of 24,000 dollars, and relevant depreciation of 18,000 dollars. In addition, Green Forest Media would have one source of fixed costs associated with the project A. Yesterday, Green Forest Media signed...

operating cash flow. find the operating cash flow for the year for robinson and sons if...

operating cash flow. find the operating cash flow for the year for robinson and sons if it had sales of $81,200,000,,, cost of goods of $35,500,000, sales and administrative costs of $6,200,000, depreciation expense of $7,000,000, and a tax rate 0f 30%. the operating cash flow is ....... (round to the nearest dollar)

A project will produce an operating cash flow of $15,200 a year for four years. The...

A project will produce an operating cash flow of $15,200 a year for four years. The initial cash investment in the project will be $50,000. The net after-tax salvage value is estimated at $4,000 and will be received during the last year of the project’s life. What is the internal rate of return for this project? Should the project be accepted if the cost of capital is 10%? Group of answer choices 8.31%; No, project should be rejected 10.81%; Yes,...

A project will produce an operating cash flow of $91,500 a year for three years. The...

A project will produce an operating cash flow of $91,500 a year for three years. The initial cash outlay for equipment will be $188,000. The net aftertax salvage value of $17,000 will be received at the end of the project. The project requires $52,000 of net working capital up front that will be fully recovered. What is the net present value of the project if the required rate of return is 14 percent? A. $22,318.76 B. $19,002.37 C. $15,450.93 D....

A project will produce an operating cash flow of $295,000 a year for four years. The...

A project will produce an operating cash flow of $295,000 a year for four years. The initial cash outlay for equipment will be $721,000. The net aftertax salvage value of $72,000 will be received at the end of the project. The project requires $79,000 of net working capital that will be fully recovered when the project ends. What is the net present value of the project if the required rate of return is 15 percent? $114,372 $121,017 $128,553 $136,764 $144,915

Subjects