What effect would increase of selling price have on cash

Assignment Help Financial Econometrics

Reference no: EM13334343

You are analyzing a project and have developed the following estimates: unit sales = 1,320, price per unit = $79, variable cost per unit = $43, fixed costs = $24,900. The depreciation is $11,300 a year and the tax rate is 40 percent. What effect would an increase of $1 in the selling price have on the operating cash flow?

Reference no: EM13334343

Questions Cloud

Find should the radius of the disk be : The wheels of a wagon can be approximated as the combination of a thin outer hoop, of radius rh = 0.209 m and mass 4.51 kg, what should the radius of the disk be

What is amount the firm should use as the initial cash flow : Mind Blowers, Inc. has a new project in mind that will increase accounts receivable by $28,000, decrease accounts payable by $6,000, increase fixed assets by $36,000, and decrease inventory by $11,000.

What is the hedonic method : What is the hedonic method and why is it sometimes used to track changes in the Consumer Price Index?

Utility function and the budget constraint : The utility function and the budget constraint and write down the Lagrange Function and solve for the first order conditions.

What effect would increase of selling price have on cash : You are analyzing a project and have developed the following estimates: unit sales = 1,320, price per unit = $79, variable cost per unit = $43, fixed costs = $24,900. The depreciation is $11,300 a year and the tax rate is 40 percent.

Compute the total energy in the system : A spring with a constant k=42.3 N/m has a 2.10 kg mass attached to it. The mass is free to slide on a frictionless track parallel to the spring. What is the total energy in the system

Specific challenges of the summa four acquisition : How would you improve Cisco’s acquisition selection and integration process? What is missing? What would you add or modify? Why? What are the specific challenges of the Summa Four acquisition? In your opinion does the Cisco process adequately address..

Define the measurement are known with certainty : A nail is measured with a ruler and its length is reports as 5.46 cm. Select ALL the statements that are correct about the certainty and uncertainty represented in this recorded measurement.

Determine what is the irr for the project : Your firm is contemplating the purchase of a new $674,000 computer-based order entry system. The system will be depreciated straight-line to zero over its six-year life. It will be worth $58,000 at that time.

User Account

All Pages