What is the incremental cash flow for year 4

Assignment Help Finance Basics
Reference no: EM132035759

Ceteris paribus, assume the following: Year Zero: Capital investment= $ 6 million and increase 0f $500,000 in needed inventory; Year1-4: OCF= $ 4,500,000 PER YEAR; Year 4: Recovery of earlier increase in working capital and in addition, cash flow from salvage of $500,000. What is the incremental cash flow for year 4?

Reference no: EM132035759

Questions Cloud

Funding amount a business : What criteria does a Venture Capitalist firm use to decide on the funding amount a business would receive?
Approximate real rate of return on investment : Today, you sold your shares for $54.2 a share. What is your approximate real rate of return on this investment?
Percent probability range for any one given year : Based on this information, what is the 95 percent probability range for any one given year?
Why is market efficiency important for financial managers : Why is market efficiency important for financial managers?
What is the incremental cash flow for year 4 : What is the incremental cash flow for year 4?
What is net capital spending in year 2 : For year 2, Gross Fixed Assets-$2,500; Depreciation expense -$200. What is net capital spending in year 2?
How does the stage that comes after impact your stage : HCS 455 :How does the stage that precedes yours impact the stage you are discussing ?How does the stage that comes after impact your stage ?
Will beach view accept the project : Beach View has a cost of capital of 11%. Will Beach View accept the project?
Corporate taxes on the weighted average cost of capital : What is the impact of corporate taxes on the weighted average cost of capital?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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