What is the operating cash flow for the project in year

Assignment Help Financial Management

Reference no: EM13808333

You are evaluating a project for The Tiff-any golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Tiff-any to be $430 per unit and sales volume to be 1,000 units in year 1; 1,500 units in year 2; and 1,325 units in year 3. The project has a 3-year life. Variable costs amount to $240 per unit and fixed costs are $100,000 per year. The project requires an initial investment of $174,000 in assets, which will be depreciated straight-line to zero over the 3-year project life. The actual market value of these assets at the end of year 3 is expected to be $38,000. NWC requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. The tax rate is 34 percent and the required return on the project is 10 percent.

What is the operating cash flow for the project in year 2?

Reference no: EM13808333

Questions Cloud

The sequence of a gene can result in changes : Single nucleotide changes (point mutations) in the sequence of a gene can result in changes in the amino acid sequence of a protein produced from the mutated gene. One of the most well studied examples of the effects of a mutation on the sequence of ..

Energy entrepreneurship paper : Energy Entrepreneurship Paper

Business certificate in leadership : Success University (SU) is a medium sized undergraduate institution located in Southern California. SU offers Associates and Bachelors programs in Business, Psychology and Education at their San Moreno campus and online. SU has decided to launch ..

Write a function that returns a number : Write a test program that prompts the user to enter a phone number as a string. The input number may contain letters. The program translates a letter (upper- or lowercase) to a digit and leaves all other characters intact

What is the operating cash flow for the project in year : You are evaluating a project for The Tiff-any golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Tiff-any to be $430 per unit and sales volume to be 1,000 units in year 1; 1,500 units in year 2; and 1,325 units in ..

There is no regional lymphadenopathy : Tommy's past medical and family histories are normal. He has been febrile but is otherwise asymptomatic. The physical examination was unremarkable except for moderate, purulent rhinorrhea and 0.5- to 1-cm diameter weeping lesions around the nose and ..

Estimate for doubtful accounts : What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet -

Productive and counterproductive behaviors : Productive and Counterproductive Behaviors

Choose one of the public policy issues poverty : Choose one of the public policy issues poverty, corporate welfare, or outsourcing, do some additional research on your chosen topic, and present your findings here

User Account

All Pages