Npv for epiphany project, The free cash flow for the first

Npv for epiphany project

Assignment Help Business Management

Reference no: EM13971730

Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects:

Year	0	1	2	3
Sales (Revenues)		100,000	100,000	100,000
- Cost of Goods Sold (50% of Sales)		50,000	50,000	50,000
- Depreciation		30,000	30,000	30,000
= EBIT		20,000	20,000	20,000
- Taxes (35%)		7000	7000	7000
= unlevered net income		13,000	13,000	13,000
+ Depreciation		30,000	30,000	30,000
- capital expenditures	-90,000

The free cash flow for the first year of Epiphany's project is closest to:

$43,000
$25,000
$13,000
$45,000

The NPV for Epiphany's Project is closest to:

$4,800
$39,000
$13,300
$20,400

Reference no: EM13971730

Questions Cloud

Analyze the benefits of your unique combination of learning : Analyze the benefits of your unique combination of Learning Patterns by identifying strategies specific to each Learning Pattern that you used to complete readings, discussions, assignments, and quizzes in this course. Describe how you took advant..

What sort of wisdom does socrates claim : What sort of wisdom does Socrates claim he does not possess? Is the claim that he does not possess this sort of wisdom coherent with his behavior in the Euthyphro? Does anyone possess this sort of wisdom?

Why target overlooked or ignored the red flag(s). : Conclude the main reasons why the attack on Target occurred. Give your opinion as to whether or not the attack was mainly due to the poor infrastructure or the inability of management to act accordingly. Justify your response.

What are the earnings per share amounts : Porter owns none of these bonds. What are the earnings per share amounts that Porter should report in its current year consolidated income statement?

Npv for epiphany project : The free cash flow for the first year of Epiphany's project is closest to: The NPV for Epiphany's Project is closest to:

What is the value of the firm if you ignore taxes : The company is in the process of borrowing $8 million at 9% interest to repurchase 200,000 shares of the outstanding stock. What is the value of this firm if you ignore taxes?

Calculate circumference and area of the circle. : What are the two most important benefits of the Java language?

Determining the incremental cash flow projects : Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental ca..

Why they are important in business intranets and extranets. : Why is it increasing most important for a CIO or IT executive who oversees geographically distributed enterprise networks to be business literate?

User Account

All Pages