What will be operating cash flow for sensitivity analysis

Assignment Help Financial Management
Reference no: EM131544029

The expected variable cost per unit for a proposed project is $8.48 and the expected fixed cost is $27,400. The cost estimates have a plus or minus range of 5 percent. The depreciation expense is $13,290 and the tax rate is 35 percent. The sale price is estimated at $13.29 a unit, give or take 2 percent. If the firm bases its sensitivity analysis on the base case estimates, what will be the operating cash flow for a sensitivity analysis of 9,200 units?

Reference no: EM131544029

Questions Cloud

Disadvantages of situational leadership styles : Explain the merits and disadvantages of situational leadership styles. Is it a good idea to shift leadership approaches or not?
Examine essential elements of leadership and managemen : Differentiate between leadership and management roles, and provide specific examples from the text, literature, or personal example.
Briefly present an observable behavior : Briefly present an observable behavior that would benefit from ABA intervention, including a target behavior definition
What do you think political obstacles would be to enacting : What do you think the political obstacles would be to enacting your plan? How difficult was it to pursue your goals while also hitting the debt target?
What will be operating cash flow for sensitivity analysis : what will be the operating cash flow for a sensitivity analysis of 9,200 units?
How has the glass ceiling affected the healthcare industry : How has the glass ceiling affected the healthcare industry? What is the value of including qualified people with disabilities in healthcare organizations
Operating cash flow for sensitivity analysis : If the firm bases its sensitivity analysis on the base case estimates, what will be the operating cash flow for a sensitivity analysis of 9,200 units?
An overview of gender roles in the selected culture : A discussion of how what you have learned about the culture you researched has impacted your general view about communicating with others.
Compare and contrast the concepts of culture and race : Compare and contrast the concepts of culture, race, personality, and pop culture

Reviews

Write a Review

Financial Management Questions & Answers

  Example of an easy or difficult capital budgeting decision

In a recent WSJ article you read that Hulu has stepped up their competition with Netflix by making the decision to invest millions in new movies and TV shows. Do you think this would be an example of an easy or difficult capital budgeting decision? W..

  How much will deposited in a savings account

How much will $1,000 deposited in a savings account earning a compound annual interest rate of 6 percent be worth at the end of the following number of years?

  Calculate skys income tax refund for year three

Sky Company reports a pretax operating loss of $50,000 in Year 3 for both financial reporting and income tax purposes. It's reported pretax financial income and taxable income for the previous 2 years haddock been: Year 1: $25,000 (tax rate 30%) and ..

  Cash-accounts receivable and inventory

Consider the Current Asset accounts (Cash, Accounts Receivable and Inventory) indivuidally and as a group. What impact will the following transaction have on each account AND current asset in total?  Don't concern yourself with any changes to the lia..

  Calculate component weights of capital

As a consultant to GBH Skiwear, you have been asked to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. Calculate component weights of capital. The weight of debt in the firm’s capital struct..

  Hedges exposed to basis risk

An unexpected strengthening of the basis will benefit which of the following hedges exposed to basis risk? a. Long Hedge b. Both a Short and Long Hedge c. A Perfect Hedge d. A Cross Hedge e. Short Hedge

  What is the return on portfolio

You have a portfolio of two stocks held in equal weights. The risk free rate is 3% and the market risk premium is 9%. What is the return on the portfolio?

  Do you feel more confident in your forecast

Forecast the Dow Jones Average for the close of market trading on this day in one year from the current date. Would you put your entire life savings on your forecast? Allow a 5% margin of error to your forecast. Do you feel more confident in your for..

  What is the operating cash flow

Cusic Industries had the following operating results for 2012: sales = $29,000; cost of goods sold = $19,710; depreciation expense = $5,220; interest expense = $2,640; dividends paid = $1,400. At the beginning of the year, net fixed assets were $17,3..

  Evaluating two projects for this year capital budget

Capital budgeting criteria A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: Calculate MIRR for each project.

  Mutual fund shares at the time of the distribution

On December 1, you buy a mutual fund share for $100. On December 7 the fund pays out realized capital gains for the year of $25 per share. The shares sold during the year may have been purchased many years ago but distributions are made to whoever ow..

  Use to discount the cash flows generated by its assets

Red's Radical Rhinitis Solutions (RRRS), a pharmaceutical manufacturer wants to know what rate it should use to discount the cash flows generated by its assets. You have calculated RRRS' beta of assets as 2.8. You looked at long term historical data ..

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