Calculate the operating cash flow for project

Assignment Help Finance Basics
Reference no: EM132500892

Shelton, Co. is evaluating making an up-front fixed asset investment of $2,350,000 for an expansion project that will last three years. This asset will be depreciated using the straight-line method. It will be depreciated to zero over the life of the project and has no salvage value when the project is over. The project is estimated to generate $2,470,000 in annual sales. The annual costs are estimated to be $1,490,000. The tax rate is 24 percent. Calculate the operating cash flow for this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM132500892

Questions Cloud

Compute net cash flow from operating activities : $42,000 during 2018. In computing net cash flow from operating activities under the indirect method, net income for 2018 should be
Determine the variable cost per unit : Fixed costs are $142,800, and income from operations is $1,285,200. Determine the Variable cost per unit, Unit contribution margin
Calculate the npv for project-squaw valley recreation : Squaw Valley Recreation is in the process of analyzing a new three year project to grow their business. At the beginning of this project, Squaw Valley
BIT 100 Introduction to Information Technology Skills : BIT 100 Introduction to Information Technology Skills Assignment Help and Solution - Emirates College of Technology, UAE. Questions 1: Forms of e-commerce
Calculate the operating cash flow for project : Calculate the operating cash flow for this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Determining the appropriate amount for aftertax cash flow : Calculate the appropriate amount for the aftertax cash flow from the sale of this asset?
Discuss what proper handwashing is : Discuss what proper handwashing is and how it affects infection control? You will submit a type-written paper on your two selected course objectives.
What are the break-even sales : The unit selling price is $209, and the unit variable costs are $127, what are the break-even sales (units) if fixed costs are increased by $47,900?
Determining the annualized holding period return : During this period the stock paid dividends of $5.40 per share. What is your annualized holding period return (annual percentage rate)?

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss efficiency and administrability of luxury car tax

In 2002. the US federal government levied a lax of 3 percent on that pan of a car's pike exceed-ing 840.000. Ter example, the tax liability on a 650,000.

  What is the initial investment in the product

Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 10% of revenues in the following year.

  Cash versus stock payment

Eastman Corp. is analyzing the possible acquisition of Kodiak Company. Both firms have no debt. Eastman believes the acquisition will increase its total after tax annual cash flows by $2.6 million indefinitely. The current market value of Kodiak i..

  What are the variables affecting the npv of a project

What are the variables affecting the NPV of a project, to use when performing a sensitivity analysis ?

  If you were to send your top managers to these countries

weekly tasks or assignments individual or group projects will be due by monday and late submissions will be assigned a

  Future of financial managementnbsp please respond to the

future developmentsnbsp please respond to the followingreflecting on the various topics discussed throughout the course

  What will be the firm operating cycle

Suppose that Dunn Industries has annual sales of $2.32 million, cost of goods sold of $1,670,000, average inventories of $1,136,000, and average

  What is ex-dividend price of a share in a perfect capital

Natsam Corporation has $250 million of excess cash. The firm has no debt and 500 million shares outstanding with a current market price of $15 per share. Natsamâ's board has decided to payout this cash as a one-time dividend.

  What will be the cash flows on the transaction

If the U.S. dollar is expected to appreciate against the pound to £1.65/$1,?£1.815/$1, and £2.00/$1 over the next three years, respectively.

  Ownership of the risk to another party

Q1. ____ involves allocating ownership of the risk to another party. Q2. A project manager can chart the probability and impact of risks on a ____.

  The following comparative income statement in thousands of

the following comparative income statement in thousands of dollars for the fiscal years 2008 and 2007 was adapted from

  What will her monthly mortgage payment be

In order to lower her monthly payment ,Louisa will make a 20% down payment and will purchase 2 points. What will her monthly mortgage payment be?

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