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ACC - Income Projection Week 1 Problem




Question;(1) A table with the following five lines:Accounts receivableInventoryAccounts payableNWCIncrease in NWC(2) A table with the following eigth lines:EBITIncome taxesNet income after taxesAdd back depreciationMinus increase in NWCMinus capital expendituresMinus leasehold improvementsNet cash flowI also have to find out the NPV.Note the following please:?Capital Expenditures of $50,000 per year.?Leasehold Improvements of $10,000 per year.?DSO of 75 Days.?Inventory Turnover of 12 times.?Accounts Payable of 30 days.?Depreciation is constant.?The combined Federal and State Tax Rate is 40%.?There are no additional financing expenses associated with the transaction.After you have completed your cash flow forecast, calculate a Net Present Value assuming a discount rate of 15%.


Paper#41975 | Written in 18-Jul-2015

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