4. Calculating OCF Consider the following income statement! $537,200 346,800 Sales Costs Depreciation 94,500 EBIT Taxes (21%) ? Net income Fill in the missing numbers and then caicrlate o F What is the depreci- ation tax shield?
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![LO 2
4. Calculating OCF Consider the following income statement:
Sales
$537,200
Costs
346,800
Depreciation
94,500
EBIT
?
Taxes (21%)
?
Net income
Fill in the missing numbers and then caicrlate e F What is the depreci-
ation tax shield?
5. Calculating Depreciation A piece of new p
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- 4. Calculating OCF [LO1] Consider the following income statement: Sales $747,300 582,600 Depreciation 89,300 Costs EBIT Taxes (22%) ? Net income ? Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield?Find FCFFRevenue =247 cost =12 depreciation = 13 tax rate = 25% Capex =123 change in working capital = -5How much is the true profit of the branch? A. 1,266,667B. 1,250,000C. 1,200,000D. 1,400,000
- Please answer Question 3 and Question 6. What would happen to net income and cash flow if depreciation were increased by $1.30 million? What would be the impact on cash flow if depreciation was $1.30 million and interest expense was $2.30 million?4. Find the real After-Tax ROR for the following cash flow. Given 28% tax & i, =8.5% 100K 11K 11K 11K 11K of 1 20 M .. 100KSuppose you sell a fixed asset for $85,000 when it's book value is $100,000. If your company's marginal tax rate is 21%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)? Multiple Choice A. $67,150 B. $100,000 C. $88,150 D. $15,000
- Assume a corportation has earnings before depreciation and taxes of $100,000, depreciation of $50,000, and is in a 30% percent tax bracket. Compute its cash flow using the format. Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes @ 30% Earnings after taxes Depreciation 2a) In problem 1 , how much would cash flow be if there were only $10,000 in depreciation ? All other factors are the same. 2b) How much cash flow is lost due to the reduced depreciation between Problems 1 and 2a?What will be the total present value of an income flow starting with 1500TL/year in year 3 and ending in year 12 appreciating at a rate of 0.16, together with a lump sum income of 50 000TL to occur in year 15 if i:0.25? О а. less than 2000 TL O b. between 2001-4000 TL Oc. between 4001-6000 TL O d. between 6001-9000 TL O e. greater than 9001 TLSuppose you sell a fixed asset for $112,000 when its book value is $112,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)? Multiple Choice $112,000 $0 $68,320 $34,720
- ements What is the total Wealth Accumulation of the following investment assuming the available after tax reinvestment rate is 5%? IRR 10.70% O $4,690,000 O $4,821,078 O $4,848,844 $4,905.989 n 0 $ 1 S 2 $ 3 $ AS 5 $ Investment $ (3,000,000) 240,000 250,000 260,000 266,000 3,674,000Suppose you have the following information for a project. Year Before-Tax Income After-Tax Cash Flows Taxes Cash Flows 0 12345 -1000 500 340 244 100 100 -72 -33.6 -10.56 24 24 Calculate the present worth of after-tax cash flows. Use an interest rate of 8%. Round your answer to 2 decimal places.What is the annual operating free cash flow if operating revenues increase by $1.2 million, operating expenses (ex-depreciation) go up by $0.7 million, and depreciation goes up by $0.32 million? The tax rate is 31%. Express in $ million, to the nearest $0.001 mil. Drop the $ sign. E.g., if your answer is $506,500, record it as 0.507.
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