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As a member of Gamma Corporation's financial staff, you must estimate the Year 1 operating net cash flow

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As a member of Gamma Corporation's financial staff, you must estimate the Year 1 operating net cash flow for a proposed project with the following data. What is the Year 1 operating cash flow?;Sales $33,000;Depreciation $10,000;Other operating costs $17,000;Interest expense $4,000;Tax rate 35%;(Points: 4);$ 9,500;$10,600;$11,700;$12,800;$13,900;6.;Delta Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's operating cash flow during Year 1?;Equipment cost (depreciable basis) $75,000;Straight line depreciation rate 33.33%;Sales $60,000;Operating costs excl. depr?n $25,000;Tax rate 35%;(Points: 4);$27,000;$28,500;$30,000;$31,500;$33,000;7.;Swannee Resorts is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight line method over the project's 3 year life, and would have zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.);WACC 10%;Net investment cost (depreciable basis) $65,000;Straight line depr?n rate 33.33%;Sales revenues $70,000;Operating costs excl. depr?n $25,000;Tax rate 35%;(Points: 4);$22,156.24;$23,791.14;$24,354.87;$25,189.71;$26,599.05;8.;Big Air Services is now in the final year of a project. The equipment originally cost $20 million, of which 75% has been depreciated. Big Air can sell the used equipment today for $6 million, and its tax rate is 40%. What is the equipment?s after-tax net salvage value?;(Points: 4);$500,000;$600,000;$700,000;$800,000;$900,000;9.;You work for Alpha Inc., and you must estimate the Year 1 operating net cash flow for a proposed project with the following data. What is the Year 1 operating cash flow?;Sales $11,000;Depreciation $4,000;Other operating costs $6,000;Tax rate 35%;(Points: 4);$4,650;$4,800;$4,950;$5,100;$5,250;10.;Your company, Beta Corporation, is considering a new project which you must analyze. Based on the following data, what is the project's Year 1 operating cash flow?;Sales $22,000;Depreciation $8,000;Other operating costs $12,000;Tax rate 35%;(Points: 4);$9,100;$9,200;$9,300;$9,400;$9,500

 

Paper#32818 | Written in 18-Jul-2015

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