Calculate the incremental annual after-tax free cash flow

Assignment Help Accounting Basics
Reference no: EM133069422

Question - You are considering opening another restaurant in the TexasBurgers chain. The new restaurant will have annual revenue of $349,200 and operating expenses of $174,600. The annual depreciation and amortization for the assets used in the restaurant will equal $58,200. An annual capital expenditure of $9,500 will be required to offset wear-and-tear on the assets used in the restaurant, but no additions to working capital will be required. The marginal tax rate will be 40 percent. Calculate the incremental annual after-tax free cash flow for the project.

Reference no: EM133069422

Questions Cloud

Calculate the average expected rate of return : Obtain 5 year's worth of data (monthly) on SPDR S&P 500 ETF Trust and Vanguard Real Estate Index Fund ETF You should have 60 observations.
What is the value of a share of gillette stock : Assume Gillette Corporation will pay an annual dividend of $0.62 one year from now. Analysts expect this dividend to grow at 12.1% per year thereafter until the
Price of a european put option : What happens to the price of a European put option when the risk-free interest rate decreases? Please explain why.
Should one lease or buy a car in canada today : Should one lease or buy a car in Canada today? Choose three aspects to explore and write one paragraph (5 sentences) for each aspect.
Calculate the incremental annual after-tax free cash flow : The new restaurant will have annual revenue of $349,200 and operating expenses of $174,600. Calculate the incremental annual after-tax free cash flow
Prepare Westwind Corporation journal entries : Prepare Westwind Corporation journal entries to record sale of Dudley Inc. shares in early January following year for $15,100 less a 1% commission paid
Calculate the cost of equity for firm according to capm : Treasury bills are currently yielding 3.86%, the expected market return is 6.55%, and the firm's beta is 0.67. Calculate the cost of equity for this firm accord
Primary risk of trading in the fed funds markets : What is the primary risk of trading in the fed funds markets? How did this risk come into play during the financial crisis of 2008-2009?
What is the fx equity exposure of osterfeld inc : Osterfeld Inc. (NYSE Ticker symbol: OST) is a U.S.-based importer of European soccer gear. OST's financials are the following: Enterprise value USD 50 million;

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd