What is the estimated annual operating cash flow

Assignment Help Finance Basics

Reference no: EM131958010

Question: A company is considering a 5-year project to open a new product line. A new machine with an installed cost of $60,000 would be required to manufacture their new product, which is estimated to produce sales of $120,000 in new revenues each year. The cost of goods sold to produce these sales (not including depreciation) is estimated at 54% of sales, and the tax rate at this firm is 30%. If straight-line depreciation is used to calculate annual depreciation, what is the estimated annual operating cash flow from this project each year?

Reference no: EM131958010

Questions Cloud

Determine the npv for fairways driving range : The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will need to purchase a ball dispensing machine.

What is the cash break-even point : A company is considering a 5-year project that opens a new product line and requires an initial outlay of $81,000. The assumed selling price is $98 per unit.

Would you expect the actual ror to be higher : Your company is considering the purchase of a diesel pile hammer for $250, 000. The annual operating cost of the equipment for the first year is $10,000.

What actions would reduce the company current ratio : If a company has current ratio of 1.9. Considered alone, what actions would reduce the company's current ratio?

What is the estimated annual operating cash flow : A company is considering a 5-year project to open a new product line. A new machine with an installed cost of $60,000 would be required to manufacture.

What will the cash flows of project be : Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully-depreciated vans.

What is the minimum uniform annual revenue : On a before-tax basis, what is the minimum uniform annual revenue that must be achieved over the truck's useful life to justify the new truck purchase?

How much should a share stock in the firm be worth : If the company expects to grow by 3% per year in the foreseeable future, how much should a share stock in this firm be worth?

Many organizations take to managing turnover : How is this approach different from the typical approach that many organizations take to managing turnover?

User Account

All Pages