What is projected net income

Assignment Help Financial Management
Reference no: EM131321437

A proposed new investment has projected sales of $830,000. Variable costs are 55 percent of sales, and fixed costs are $187,200; depreciation is $93,500. Assume a tax rate of 40 percent. What is the projected net income?

Reference no: EM131321437

Questions Cloud

How important is hci for nontechnical individuals : How important is HCI for nontechnical individuals? Identify an app on your phone or a piece of software on your computer, describe it, and explain its current basic HCI for users.
Banking and money lending help to stimulate economic growth : Do you feel that the financial markets play any role in financing, instigating or creating wars among nations in the modern world? How do the concepts of credit and interest, as incorporated into banking and money lending, help to stimulate economic ..
Derive an upper bound on the value of a put option : Derive the forward price of the stock for delivery in one year - what is the value of an otherwise identical European put option?
Rewrite returns expression in which cond has been replaced : Write the function rewrite (x), x is an s-expr. If x is not a "legal" cond, rewrite returns nil. Otherwise, rewrite returns an expression in which each cond has been replaced by an equivalent sequence of nested if- then.
What is projected net income : A proposed new investment has projected sales of $830,000. Variable costs are 55 percent of sales, and fixed costs are $187,200; depreciation is $93,500. Assume a tax rate of 40 percent. What is the projected net income?
Decision-making technique : Incremental analysis is a problem-solving approach that utilizes accounting information to assist in decision making. It is applied when more than one alternative is present.
What is the proper cash flow amount : Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8.2 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent fac..
Renewable energy strategies for sustainable development : Prepare a list of three academic sources relevant to your future field of study and linked to your research project (i.e. UEEC seminar presentation)
A ladder program diagram using the slc 500 addressing scheme : You are an electrical engineer for Packaging, Inc. Your boss has assigned you a project to program a pick-and-place system using a robot to remove cases from a conveyor to a pallet.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value of the lump sum

What is the lump sum deposited today at 8% compounded qrtly for 10 years, will yeild the same amount if $4000 deposit with 6% interest end of 6 months compound simi annual, 10 years. What is the value of the lump sum?

  Shares of new stock

A firm currenlty has 20,000,000 shares with a price of 25 per share. they want to issue another 2,000,000 shares so they give each shareholder the right to buy .1 shares of new stock for 2.00 ( it will take ten rights to buy one new share for 20.0..

  What is the bonds yield-to-maturity

You just purchased a bond that matures in 16 years. The bond’s par value is $1,000, and you purchased the bond for $1,050. The bond’s issuer pays interest annually at the end of each year. The bond’s current yield is 6.25%. What is the bond’s yield-t..

  Firm declared a dividend-information effect

A firm declared a dividend of $2 per share, which was an increase of 25% from the prior year, yet the stock declined by 3% the day of the announcement. Another firm declared a dividend of $2 per share, which was the same as the prior year, and its st..

  What is the holding period return

Assume you short sell 300 share of the stock of EFG Corporation. Margin requirements are 60 percent. The price was $34 per share. One year later, the price of the stock is $35 per share. During that time, the company paid $0.75 per share in dividends..

  What is the total rate of return on the bond

Consider a bond paying a coupon rate of 12% per annum semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity. Find the bond’s price today and size months from now after the next coupon is paid. Wh..

  What would be additional funds needed

Broussard Skateboard's sales are expected to increase by 15% from $8.0 million in 2015 to $9.20 million in 2016. Its assets totaled $6 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the same rate as proj..

  Describe variable costs and identify an example

Describe variable costs and identify an example. Contrast the effects of changes in the activity level on the total variable costs and the variable cost per unit.

  What is the probability that this stock will earn

A stock had returns of 14 percent, 25 percent, and 3 percent for the past 3 years. Based on these returns, what is the probability that this stock will earn at least 25.00 percent in any one given year? 5.0 percent 1.0 percent 2.5 percent 0.5 percent..

  Common stock with the expected dividends

Consider a common stock with the following expected dividends: $2 in one year (i.e., at t=1), $3 in two years (at t=2), $0 in three years (at t=3), $2 in four years (at t=4) and $5 in five years (at t=5).

  Calculate the MIRR of the project using all three methods

Chamberlain Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 10 percent and a reinvestment rate of 7 percent on all of its projects. Year Cash Flow 0 –$ 15,400 1 6,500 2 7,700 3 7,300 4 6,100 5 – 3,500 ..

  Weighted average that implied by two outstanding debt issues

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $72, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $70 million, a coupon rate..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd