What is the operating cash flow

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Reference no: EM131324222

Question 1

ABC Inc. has estimated the following revenues and expenses related phase I of a proposed new housing development? Incremental sales= $5,081,953, total cash expenses $3,212,751, depreciation $623,167, taxes 33%, interest expense, $200,000. What is the operating cash flow?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 2

A project requires $434,624 of equipment that is classified as 7-year property. What is the depreciation expense in year 3 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 3

ABC Compay has the following projections for Year 1 of a capital budgeting project.

Year 1 Incremental Projections:

Sales                                              $785,719

Variable Costs                               $91,387

Fixed Costs                                   $65,859

Depreciation Expense                   $127,104

Tax Rate                                        36%

What is the Operating Cash Flow?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 4
The net working capital invested in a project is generally:

an opportunity cost.
a sunk cost.
depreciated to a zero balance over the life of the project.
recovered at the end of the project.
recovered at the start of the project.

Reference no: EM131324222

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