Compute operating cash flows for a project that is

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Compute operating cash flows for the following:

a. A project that is expected to have sales of $10,000, expenses of $5,000, depreciation of $200, an investment of $50 in net working capital, and a 20 percent tax rate.

b. A project has the simplified project income statement below. In addition, assume the project will require a $75 investment in net working capital.

Sales
                         $925.00
-Costs                -315.00
-Depreciation       -100.00
EBIT=EBT             510.00
-Taxes (at 34%)  -173.40
Net Income           336.60

c. For a capital budgeting proposal, assume this year's cash sales are forecast to be $220, cash expenses $130, and depreciation $80. Assume the firm is in the 30 percent tax bracket.

Reference no: EM13589735

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