What is the amount of after-tax cash flow

Assignment Help Financial Management
Reference no: EM132053439

XYZ Corp. is considering a new project. The project will require $334854 for new fixed assets, $149453 for additional inventory and $23101 for additional accounts receivable. Short-term debt is expected to increase by $108666 and long-term debt is expected to increase by $280400. The project has a 5-year life. The fixed assets will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the fixed assets can be sold for 25% of their original cost. The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales of $563409 and costs of $393813. The tax rate is 35% and the required rate of return is 15%.

What is the initial cost of this project? (Round answer to 0 decimal places, do not round intermediate calculations)

What is the amount of the operating cash flow for the first year of this project? (Round answer to 0 decimal places, do not round intermediate calculations)

What is the amount of the after-tax cash flow from the sale of the fixed assets at the end of this project? (Round answer to 0 decimal places, do not round intermediate calculations)

Reference no: EM132053439

Questions Cloud

You think your forecast may vary from the benchmark : Provide an explanation as to why you think your forecast may vary from the benchmark.
What is the amount of cash flow : What is the amount of cash flow you would receive from your strategy in the second year?
Define an explanation of ethical behavior in the workplace : This question involves an explanation of ethical behavior in the workplace. Explain what it means to demonstrate positive ethical behavior in the workplace.
What other perceptual errors are apparent in this case : Analyze and discuss the case first. Apply your knowledge of stereotyping and social identity theory to explain what went wrong here.
What is the amount of after-tax cash flow : What is the initial cost of this project? What is the amount of the after-tax cash flow from the sale of the fixed assets at the end of this project?
Find the size of the monthly payment on the loan : Find the size of the monthly payment on the loan. calculate the total interest paid over the life of the loan?
Define corporate social responsibility : Which theory (Ownership and Stakeholder) do you feel has more of an impact on the business environment?
Should people under 18 be subjected to legal curfews : Identify and describe three to four different conclusions that are drawn when arguments related to the issue are made.
Remediation of recalcitrant organic contaminants : SOIL 431 - Soils for Sustainable Ecosystems - university of new england - soil contamination and current concerns in Australia

Reviews

Write a Review

Financial Management Questions & Answers

  Statements is a general implication of globalization

Which of the following statements is a general implication of globalization?

  How much will you pay in capital gains taxes

If you buy a home for $100,000 Mortgage, Insurance & Taxes costs you $1,000 a month Your Mortgage interest rate is 4% and you had a down payment of $3,000 It costs you roughly $3,000 a year for maintenance and upkeep. You sell your home after 5 years..

  The benefit of the interest tax shield next year

how much debt can Impsi issue this year and still receive the benefit of the interest tax shield next year?

  Potential sales of new development project

Suppose that you have begun to gather some demographic data in order to project the potential sales of a new development project.

  Calculate the non-depreciable investment

Assume that no special building or site preparation is required. Use the equipment component of the CE index to update costs.

  What is payback period in whole number years for investment

You invest $25,000 now and receive $3,000 per year for 25 years starting at the end of the first year. What is the payback period in whole number years for this investment? In other words, in what year do you break even on this investment? Use i = 8%..

  What is the project payback

What is the project's NPV? What is the project's payback?

  Weighted average cost of capital is used as discount rate

The weighted average cost of capital is used as a discount rate because

  Calculate coupon rate-sale price-total revenue for treasury

Calculate coupon rate, sale price (for S100,000 of maturity value), and total revenue for the Treasury.

  Outstanding preferred stock issue with par value

TXS Manufacturing has an outstanding preferred stock issue with a par value of $67 per share. The preferred shares pay dividends annually at a rate of 11%. What is the annual dividend on TXS preferred stock? If investors require a rate of return of 7..

  Exclusive right to exercise a real option

How important is it that an organization have an exclusive right to exercise a real option? That is, can we really say that an option being considered has value if competitors may exercise it also?

  What is the company pretax cost of debt

What is the company's pretax cost of debt? If the tax rate is 35 percent, what is the aftertax cost of debt?

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