A corporation has annual sales of $1,500,000 and costs of $698,000 in the first year. A plant is installed at a cost of $1,200,000. It will be depreciated straight line to zero in its useful life of 4 years. The tax rate is 35%. Calculate the operating cash flow for the first year. A. $326,300 B. $521,300 C. $626,300 CCOE 200

Q: What is the net after tax cash flow for year 4 if the applicable tax rate is 40%? a. $39,328 b.…

A: We are given the following income statement and cash flows of a project for years 1-5:Required:1.…

Q: ears. The company's required rate of return is 10% and pays tax at a 35% rate. The projects with be…

A: Given information : Year Cash flows A  Cash flows B 0 -20000 -20000 1 4000 6600 2 4000 8300…

Q: 1/. The company ABC is considering two mutually exclusive investment programs which have a lifetime…

A: Net present value is a capital budgeting tool based on the concept of time value of money.

Q: 1. For the following cash flow compute: Investment Annual operating Cost Annual Revenues Operating…

A: finance theory includes a collective of knowledgeable data study about the organization's market and…

Q: Required: Calculate the following. (Round dollar amounts to the nearest whole dollar and IRR to one…

A: Given Details : > Cost of the Investment = $ 425,000 > Useful Life of Investment = 5 years…

Q: Beyer Company is considering buying an asset for $310,000. It is expected to produce the following…

A: PAYBACK PERIOD   Payback Period is one of the important Capital Budgeting Technique. Payback Period…

Q: A 7-year project is expected to provide annual sales of $221,000 with costs of $97,500. The…

A: Sales= 221000 * (1-15%)= 187850Costs= 97500*(1+15%)= 112125Taxes= (Sales - Costs) * Tax rate=…

Q: Joetz Corporation has gathered the following data on a proposed investment project (Ignore income…

A: Annual Depreciation  = (Cost of Asset-Salvage Value)/Useful life of Asset…

Q: You are evaluating a capital investment that promises in year 1 revenue of $480,000.00 with…

A: Free cash flow (FCF) is a measure of a company's financial performance that represents the cash flow…

Q: A project will incur $500 in shutdown costs the year after the completion of the project.  The tax…

A: The objective of the question is to calculate the tax shield resulting from the tax-deductible…

Q: An asset costing £20,000 is expected to last three years when it can be sold for £16,000. The tax…

A: Capital allowance on assets is also known as Depreciation expenses which is charged on assets every…

Q: 41

A: Straight line depreciation = (Cost of asset - Residual value) / Useful life in years =($630,000 -…

Q: None

A: Initial Investment of $300,000 is made on equipment which will be depreciated over 6 yearsWorking…

Q: OA-90% OB. -100% OC. -110% OD. -70%

A: The Modified Internal Rate of Return (MIRR) considers the cost of capital and assumes that positive…

Q: Create a income statement and show net cashflow each year for the 4 years so you can use it for…

A: Life of project = 4yearsInitial Investment = $32000Sale price = $26Cost of goods sold =…

Q: What is the (after-tax) net income?

A: The income statement is a financial statement which shows the total revenue and total expenditure of…

Q: As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a…

A: Operating cash flow of the project helps in understanding if the business is able to generate…

Q: Required information A potential investment has a cost of $395,000 and a useful life of 6 years.…

A: Note-First question is not related to finance, So, Kindy reposts the question to its respective…

Q: , calculate the PW of after-tax cash flows. Round your answer to 2 decimal places

A: First we estimate depreciation allowed for each year.We have converted cash flows from thousand…

Q: Project Year MACRS Year 0 Depreciation Rate 33.33% Year 1 Year 2 Year 3 44.45% 14.81% 7.41% A…

A: MACRS refers to the Modified Accelerated Cost Recovery System.Under MACRS,Annual depreciation = Cost…

Q: Avalon Inc. is considering a new investment. The initial cost of the machinery is $184,000. Avalon…

A: Initial cost = $184,000 Useful life = 5 Year Salvage Value = $10,000 Annual depreciation expense =…

Q: New asset costs $12,000. The ol asset has a book value of $0 and will be sold for $3,000, increase…

A: Initial outlay is amount of investment that is made in assets of the company including the increase…

Q: A new asset is expected to provide service over the next four years. It will cost $510,000,…

A: Net present value is the difference in present value of cash flow and initial investment of the…

Q: Given the following information: Price/Unit 225 VC/Unit 75 FC 500,000 Tax Rate 21% Rate…

A: Since the FBE is negative, calculating the annual operating cash flows using this value wouldn't be…

Q: The all-equity firm invests $90 today in a machine which will be depreciated down to $0 over three…

A: The hurdle rate can be defined as the required return or minimum return required from an investment…

Q: What is the annual after-tax operating cash flow? Table 3 Initial Equipment Project Life Sales…

A: The first category of cash flow is the initial investment made, which is the initial cash…

Q: A firm buys a piece of equipment for $115,866.00 and will straight-line depreciate it to zero over…

A: Annual depreciation=(Cost-Residual value)/Useful life=(115866/5)=$23173.2/yearAnnual tax…

Q: Mojave Corporation was looking at an investment that would generate $5,000 in net income before…

A: WORKING NOTE  1) tax @21%(3000*21%)=630

Q: NPV. A project requires an investment of $330,000. The project is expected to generate after-tax…

A: NPV net present value is the measure to evaluate the project's profitability and the feasibility.…

Q: Chase Brew Inc is considering an investment with the following information: initial…

A: To answer this question 1st we can calculate depreciation per year. Depreciation = Cost of the…