What is its annual net cash flow

Assignment Help Financial Management

Reference no: EM131528562

Your planned hotel is projected to have the following: 1) Annual sales of three million dollars; 2) Annual operating expense of one million dollars; 3) Annual depreciation expense of one million dollars; 4) Annual net working capital of 500 thousand dollars. If the tax rate is 40%, what is its annual net cash flow?

1. $1,100,000

2. $1,000,000

3. Cannot be determined

4. $1.200,000

Reference no: EM131528562

Questions Cloud

What is the value of savings bond at the end of year five : Future value-Grand Opening Bank is offering a one-time investment opportunity for its new customers. What is the value of the savings bond at end of year five

Determine the loss-gain or recapture of macrs depreciation : Determine the loss, gain, or recapture of MACRS depreciation on the sale. The ADR is 12 years for this machine.

What is the price of the bond today : The bond pays an 5 percent semiannual coupon, and the bond has a 7 percent nominal yield to maturity. What is the price of the bond today?

Determine the units-of-production depreciation schedule : Determine the units-of-production depreciation schedule for the equipment.

What is its annual net cash flow : what is its annual net cash flow?

What is the rate of return on her investment : What is the margin in Dée’s account when she first purchases the stock? What is the rate of return on her investment?

Calculate the growth rate : The market capitalization rate for Admiral Motors Company is 8%. Calculate the growth rate. What will be its P/E ratio?

Pension fund manager and you have three-year obligation : Suppose you are a pension fund manager and you have a three-year obligation of 120 million.

What is the net gain from your transaction : What is the net gain from your transaction? What is the proceeds from the short sale (net of commission)?

User Account

All Pages