What is the project operating cash flow

Assignment Help Accounting Basics
Reference no: EM133045920

Question - Lawaki currently sells bula sulu and bula shirts. Lawaki is considering adding bula pants to his range. The bula pants sell for $27 each and he expects to sell 7500 units per year. By adding the bula pants, Lawaki feels that he will sell an additional 800 bula sulu at $30 a pair and 300 fewer bula shirts at $12 each. The variable cost per unit is $14 on the bula sulus, $4.50 on the bula shirts and $16 on the pants. The incremental annual depreciation expense related to the bula pants is $21000 and the incremental annual fixed costs related to the bula pants are $34000. The tax rate is 27%. What is the project's operating cash flow?

Reference no: EM133045920

Questions Cloud

Understand the importance of attaining business objectives : Understand the importance of attaining business objectives and maximizing shareholder return. Learners will gain a working knowledge of business strategy design
Calculate the balance that IOU will have on March : Calculate the balance that IOU will have on March 25 in a credit account that charges simple interest at 60% per annum
Recognizing microaggressions-denton chamber of commerce : Demonstrate the awareness, attitude, knowledge, and skills required to equitably engage and include people from different local and global cultures. Engage in a
Relative importance of the attributes : Let's suppose you are buying a new TV, and you have 4 models that you are trying to choose between. Below you will find a table with different attributes, whic
What is the project operating cash flow : Lawaki currently sells bula sulu and bula shirts. Lawaki is considering adding bula pants to his range. What is the project operating cash flow
Carlo wood manufacturing and elite furniture creations : The Hawkins Electronic Manufacturing is currently faced with an inventory inaccuracy problem. The company purchased a new ERP Inventory management module six mo
What is the payback period for the new equipment : Production and sales would continue to be at a rate of 25,000 per year for four year; What is the payback period for the new equipment
Business processes and internal controls : Business processes and internal controls - Part ABelow is an extract of the revenue process within Calders Ltd.
What are the balances of the other partners : Eddy decided to retire from the partnership and by mutual agreement is to be paid 180,000 out of partnership funds. What are the balances of the other partners

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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