What is the project free cash flow

Assignment Help Business Economics
Reference no: EM133067805

Racing Motors is introducing a new product and has expected change in net operating income of $300,000. Racing Motors has a 34% marginal tax rate. This project will also produce $50,000 of depreciation per year. N addition, this project will cause the following changes:

 

 

Without the Project

With the Project

Accounts Receivable

$33,000

$23,000

Inventory

25,000

40,000

Accounts Payable

50,000

86,000

 

What is the project's free cash flow?

Reference no: EM133067805

Questions Cloud

Calculate the average return : In a recent 5-year period, mutual fund manager Diana Sauros produced the following percentage rates of return for the Mesozoic Fund. Rates of return on the mark
Responsibilities of various company stakeholders : Identify the key roles and responsibilities of the various company stakeholders.
What is the financial advantage of accepting special order : Imperial Jewelers manufactures and sells a gold bracelet for $405.00. What is the financial advantage of accepting special order
Consequences of regi action : Regi grew up in a war zone where peace was a far-off dream. What are the possible consequences of Regi's action?
What is the project free cash flow : Racing Motors is introducing a new product and has expected change in net operating income of $300,000. Racing Motors has a 34% marginal tax rate. This project
Determining the appropriate discount rate : A municipality located in the United States has issued a series of $1,000 face value bonds that pay an annual coupon of 6% of face value in perpetuity.
Shareholders meeting : Explain the three Blanchard and Peale questions that these two managers should have asked themselves before the shareholders' meeting.
Calculate the total budget and volume variances for overhead : Shamrock Company's overhead rate was based on estimates of $186,000 for overhead costs. Calculate the total budget and volume variances for overhead
What is the stock price per share : Use the following data to calculate your stock value. Assume you use the historical geometric average growth rate (rounded to 2 decimals) for initial growth rat

Reviews

Write a Review

Business Economics Questions & Answers

  Comparison of resale values from second-hand dealers

Discuss several of the trends that are driving this rise in cooper thefts, making certain to address availability and a comparison of resale values from second-

  Law requiring that rents be cut by one-fourth

Suppose a government wishes to ensure that its citizens can afford adequate housing. Consider three ways of pursuing that goal. one method is pass a law requiring that rents be cut by one-fourth.

  What is the condition of macroeconomics equilibrium

According Keynesian’s theory (the government could switch role and become consumers during a recession) Discuses these theory with some example. !? What is the condition of macroeconomics equilibrium and find MPC when Y=1 and MPS=0.25. ?

  Risk of buying with a lower-cost adjustable-rate loan

Fixed-rate mortgages are guaranteed to stay at the same rate over the life of the loan, but are usually more highly priced.Would you take the risk of buying wit

  Standard trade model with two large countries home-foreign

Assume a standard trade model with two large countries Home and Foreign, two goods X and Y and two factors of production Labour (L) and Capital (K). Show graphically and verbally how an international income transfer from Home to Foreign, a so-called ..

  Why this is happening using supply and demand curves

Graph and explain: If you do not know how to use the computer to do this, do it by hand then scan it and send it by e-mail. You can use any software package you like. It is January 2015 and the gas price is dropping dramatically. I just saw is at Cos..

  Illustrate full income budget constraint on individual

Illustrate the full income budget constraint on an individual who has T0 units of discretionary time, Y0 units of unearned income and a wage rate of W0. In the same diagram, illustrate the utility maximizing choice of leisure and goods/income. Indica..

  Marginal cost exceeds marginal revenue-maximizing monopolist

If marginal cost exceeds marginal revenue, a profit-maximizing monopolist will

  Policy improve employment prospects for young french workers

Historically, young French workers (under age 25) have had relatively high unemployment rates: 21 percent in 2005. In 2006, the French government proposed to allow employers to fire young employees without cause (a labor restriction). How should this..

  What is value of marginal propensity to consume

What is value of marginal propensity to consume (MPC) in this model Marginal propensity to save (MPS).

  Erasmus attacks luther and luther replies to erasmus

Erasmus was critical of the Catholic Church, but he wanted to see reform. For Martin Luther, a contemporary of Erasmus, reform was not sufficient; a whole new institution would need to be established. Using the primary sources assigned in Module One,..

  Emergency procedure like the one illustrated

What other crises or catastrophes can happen in a mailroom that could prompt an emergency procedure like the one illustrated here?

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