What is the project operating cash flow for the first year

Assignment Help Financial Management

Reference no: EM131078143

The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $20 million Operating costs (not including depreciation) 8 million Depreciation 4 million Interest expense 3 million The company faces a 35% tax rate. What is the project's operating cash flow for the first year (t = 1)?

Write out your answer completely. For example, 2 million should be entered as 2,000,000.

Reference no: EM131078143

Questions Cloud

Determine the cost using target costing methodology : A new product is being designed by an engineering team at Golem Security. Several managers and employees from the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a targ..

Units are expected to be sold : A company has $6.10 per unit in variable costs and $3.80 per unit in fixed costs at a volume of 50,000 units. If the company marks up total cost by 0.47, what price should be charged if 67,000 units are expected to be sold?

Uses cost-plus pricing : The Estrada Company uses cost-plus pricing with a 0.48 mark-up. The company is currently selling 100,000 units. Each unit has a variable cost of $4.80. In addition, the company incurs $180,900 in fixed costs annually. If demand falls to 85,800 units ..

What is pre-tax cost of debt-effective annual return : Avicorp has $14.2 million debt issue outstanding, with a 6.1% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 93% of par value. What is Avicorp’s pre-t..

What is the project operating cash flow for the first year : The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $20 million Operating costs (not including depreciation) 8 million Depreciation 4 mil..

What is the price if markup : Sosa Company has $39 per unit in variable costs and $1,900,000 per year in fixed costs. Demand is estimated to be 138,000 units annually. What is the price if a markup of 35% on total cost is used to determine the price?

Disadvantage of re-working the keyboards : The Manassas Company has 55 obsolete keyboards that are carried in inventory at a cost of $9,600. If these keyboards are upgraded at a cost of $7,800, they could be sold for $19,700. Alternatively, the keyboards could be sold "as is" for $7,200. What..

What is the actual-dollar after-tax equivalent annual cost : Your company must obtain some laser measurement devices for the next six years and is considering leasing. You have been directed to perform an actual-dollar after-tax study of the leasing approach. what is the actual-dollar after-tax equivalent annu..

What is the stocks current value per share : Thomas Brothers is expected to pay a $2.3 per share dividend at the end of the year (that is, D1 = $2.3). The dividend is expected to grow at a constant rate of 3% a year. The required rate of return on the stock, rs, is 15%. What is the stock's curr..

User Account

All Pages