What is the operating cash flow for the first year

Assignment Help Financial Management

Reference no: EM13766852

The Sports Club wants to expand its facility. The expansion will require $438,000 in building improvements that will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $203,000 in additional sales. Variable costs are 60 percent of sales and the annual fixed costs are $13,600. The tax rate is 34 percent. What is the operating cash flow for the first year of this project?

Reference no: EM13766852

Questions Cloud

Best describes investment risk : Which of the following best describes investment risk?

Describe the inherent design issues across hci environments : The specific course learning outcomes associated with this assignment are- Describe the inherent design issues across HCI environments.

What tax issues-salary supplement : Andree is about to graduate college with a management degree. She has been offered a job as a sales representative for a pharmaceutical company. The job will require significant travel and entertainment expenses for which she will be given a salary s..

How do the subcultures of men''s and womens prisons differ : How do the subcultures of men's and women's prisons differ? Do you support a separate but equal women's criminal justice system? Why or why not

What is the operating cash flow for the first year : The Sports Club wants to expand its facility. The expansion will require $438,000 in building improvements that will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $203,000 in additional sales..

Revenue is from side effects of the additional product : Brook's is a specialty retailer of souvenir wear. Currently, the firm offer T-shirts, sweatshirts, and caps. Its most recent annual sales consisted of $18,000 of T-shirts, $9,000 of sweatshirts, and $1,800 of caps. The company is adding polo shirts t..

How a small signal is coupled into the base of transistor : Explain, using current, how a small signal is coupled into the base of the transistor, and how it propagates through to generate a gain. Use your own words, not a simple equation.

What is the value of the depreciation tax shield : A project has sales of $258,000, cost of $192,000, depreciation of $31,000, interest expense of $2,800, and a tax rate of 35 percent. What is the value of the depreciation tax shield?

What is the current value of stock-jewellery market : High Class Jewellery is a specialty company in the fine jewellery market. Based on its latest projections, the company expects to increase its annual dividend by 20 percent per year for the next two years and by 15 percent per year for the following ..

User Account

All Pages