What is the operating cash flow for project

Assignment Help Financial Management
Reference no: EM131842907

Jefferson & Sons is evaluating a project that will increase annual sales by $145,000 and annual cash costs by $94,000. The project will initially require $110,000 in fixed assets that will be depreciated straight-line to a zero book value over the four-year life of the project. The applicable tax rate is 32 percent. What is the operating cash flow for this project?

Reference no: EM131842907

Questions Cloud

Calculate the new book value per share : Calculate the new book value per share. Calculate the new total earnings. Calculate the new market-to-book ratio
Report on how you worked to produce your MYOB assignment : ACC203 Accounting Information Individual Assignment. You have to provide an individual work report on how you have worked to produce your MYOB assignment
Tell us about specific people : Also, tell us about specific people (famous or not) who are virtuous in your eyes. Or, if you see yourself as virtuous, you can write response
Analyze views of women reproduction solutions : Analyze views of women's reproduction solutions in the 19 th Century and interpret their historical and contemporary impact.
What is the operating cash flow for project : The applicable tax rate is 32 percent. What is the operating cash flow for this project?
Utilitarianism or kantianism : Question: How does the allegedly typical "female" style of moral thinking differ from utilitarianism or Kantianism?
Purchase maximize shareholders wealth : What is its IRR and will this purchase maximize shareholders wealth?
Worthless as the expected life of the refrigeration : After the three years, the cart is expected to be worthless as the expected life of the refrigeration unit is only three years. What is the payback period?
Augustine confessions and the plato apology : What are the three major differences between the introduction to Augustine's "Confessions" and the Plato's "Apology" from Week 2??

Reviews

Write a Review

Financial Management Questions & Answers

  It is invested in account with quoted annual interest rate

It is invested in an account with a quoted annual interest rate of 5 percent with monthly compounding of interest?

  What are the current total carrying cost

The Trektronics store begins each week with 420 phasers in stock. This stock is depleted each week and reordered. The carrying cost per phase is $37 per year and the fixed order cost is $78. What are the current total carrying costs? (Do not round in..

  Which case the property is transferred to the lender

A property is expected to have NOI of $100,000 the first year. which case the property is transferred to the lender.

  An investment offers a total return

An investment offers a total return of 11 percent over the coming year. Bill Bernanke thinks the total real return on this investment will be only 7.4 percent. What does Bill believe the inflation rate will be over the next year?

  How much of the payment goes toward principal and interest

Compute the required monthly payment on a $80,000 30-year, fixed-rate mortgage with a nominal interest rate of 5.80%. How much of the payment goes toward principal and interest during the first year?

  What signals does dividend policy provide to investors

Do we always select those projects that have the highest return on investment? What other factors play into capital budgeting decisions? What incentive is there for a company to pay dividends? What signals does dividend policy provide to investors?

  Return on their investment from buying bates? stock

Bates Inc. pays a dividend of ?$1.25 and is currently selling for ?$38.95 If investors require a 13 percent return on their investment from buying Bates? stock, what growth rate would Bates Inc. have to provide the? investors?

  Should the company follow the residual dividend policy

Should the company follow the residual dividend policy? Why or why not?

  Which company appears to have the better net profit margin

Which company appears to have the better net profit margin?- Which company appears to have the best return on assets?

  Drivers of de-risking in terms of correspondent banking

Discuss the drivers of de-risking in terms of correspondent banking.

  Sensitivity of the ocf to changes in quantity sold

Calculate the sensitivity of the OCF to changes in the quantity sold.

  Software for the? universitys class registration system

Your firm has been hired to develop new software for the? university's class registration system. What are the IRRs of this? opportunity?

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