What is the annual operating cash flow of the new gps system

Assignment Help Finance Basics
Reference no: EM132024993

Question: Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units at $19 a unit, production costs at 40% of sales price, annual fixed costs for production at $130,000, and straight-line depreciation expense of $205,000 per year. The company tax rate is 38%.

What is the annual operating cash flow of the new GPS system?

Reference no: EM132024993

Questions Cloud

Confidence interval for the population mean : What is the margin of error of µ?? Interpret the results? The confidence interval for the population mean µ is
Compute the break-even point of the sleeping bag : Ontario Outdoors is a manufacturer of outdoor items. The company is considering the possibility of offering a new sleeping bag that would sell for $150 each
What is the probability that none of them have graduated : If you randomly selected 7 Reynold's students who first enrolled in the fall of 2015, what is the probability that none of them have graduated?
Was america a safer more well-protected democracy : Was America a safer, more well-protected democracy as a result of its military involvement in World War I?
What is the annual operating cash flow of the new gps system : Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units.
Return a product for a refund at goodbuys supermarkets : On average, 2.5 customers per hour return a product for a refund at Goodbuys supermarkets
The bank breaks even on the two-period contract : What is the first period rate at which the bank breaks even on the two-period contract? Explain why this breakeven rate differs from breakeven rate in part C.
How has the foreign government impacted you : A Letter from Boston Place yourself (same age, family situation, and relative occupation) in early 1770s Boston.
Determine the yield on treasury-note : The one-year Treasury Note has a yield of 2%. It is expected that the same one-year Treasury Note issued one year from now is expected to also yield 2%.

Reviews

Write a Review

Finance Basics Questions & Answers

  Discuss each type of financing transaction

For each type of financing transaction, specify whether Citigroup would serve as the creditor or would simply facilitate the flow of funds to the firm.

  What is the purpose of diversification stratagems

What types of instruments should Elizabeth include in the international portfolio? How risk is assessed using the security market line? What is the purpose of diversification stratagems?

  What is the current share price

If the required return is 11 percent and the company just paid a $1.45 dividend, what is the current share price?

  Give some examples that illustrate how different growth

give some examples that illustrate howa seasonal factors andb different growth rates might distort a comparative ratio

  Forecast the rate of return on the book value

Creating Earnings and Valuing Created Earnings (Medium) The prototype one-period project at the beginning of the chapter was booked at its historical cost.

  Candy and i were going

Candy and I were going through the last year's financial statements (year ended 31 December 2012) and I discovered that the income tax expense account was significantly lower than the income tax the company actually paid to the Australian Taxation Of..

  What are the three markets in financial market

What are the three markets in financial market? Why is each one of them important?

  Construct residuals against the independent variable rent

Construct a plot of the residuals against the independent variable rent. Based on this residual plot, does a simple linear regression model appear.

  Evaluate the potential profitability of this project

Describe other issues that should be considered as you evaluate the potential profitability of this project for TSL Jewellery and Are the elements of the data, including price, advertising, and the price of the related product appropriate for estima..

  How much are you willing to pay to purchase

If you require a 12 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

  What is the firm''s level of inventories

Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, and its quick ratio is 1.0. What is the firm's level of current liabilities? What is the firm's level of inventories?

  What is university weighted-average cost of capital

According to the balance sheet, if the preferred stock pays a dividend of $2 per share, the beta of the common tsock is .8, the market risk premium is 10%, the risk free rate is 6%, and the firm's tax rate is 40%, what is University's weighted-ave..

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