Calculating the operating cash flow

Reference no: EM131931325

Question: ABC Company has a proposed project that will generate sales of 472 units annually at a selling price of $206 each. The fixed costs are $7,317 and the variable costs per unit are $45. The project requires $15,124 of equipment that will be depreciated on a straight-line basis to a zero book value over the 7-year life of the project. That is, depreciation each year is $15,124/7. The tax rate is 38 percent. What is the operating cash flow?

Reference no: EM131931325

Questions Cloud

Ideas of geography and roads play in novel : In Never Let Me Go by Kazuo Ishiguro, Kathy refers to geography lessons at Hailsham and, later in her life, driving around England.

What is the economic order quantity : ABC Company sells 4,915 chairs a year at an average price per chair of $165. The carrying cost per unit is $25.96.

Expected return would be consistent with those parameters : Given that the stock is selling for $36.60, what expected return would be consistent with those parameters?

A jury of her peers : Use evidence from "A Jury of Her Peers" and the Spoon River Anthology epitaphs to explain how literature of the time reflected some women

Calculating the operating cash flow : ABC Company has a proposed project that will generate sales of 472 units annually at a selling price of $206 each. The fixed costs are $7,317 and the variable.

What is the inventory holding cost of an item : What is the inventory holding cost (in $) of an item that costs High Deals $20 and is sold to their customers at $30?

What profit margin must the firm achieve : Abacus Co. wishes to maintain a growth rate of 13.4 percent a year, a debt-equity ratio of 1.7, and a dividend payout ratio of 30 percent.

Little laugh for the insignificance of kitchen things : "'Nothing here but kitchen things,' he said, with a little laugh for the insignificance of kitchen things."

What would the market price be for the bond : If the market rate of interest for this bond moves to 5% exactly one year after issue, what would the market price be for the bond?

User Account

All Pages