A proposed new investment has projected sales of $515,000. Variable costs are 36 percent of sales, and fixed costs are $173,000; depreciation is $46,000. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected net income? (Do not round intermediate calculations.) Sales Variable costs Fixed costs Depreciation EBT Taxes Net income
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- You need to estimate the value of Laputa Aviation. You have the following forecasts (in millions of dollars) of its profits and of its future investments in new plant and working capital Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Pretax profit Tax at 30% Investment Answer is complete but not entirely correct. Total value b. Laputa's equity $ 1 $ 81 21 60 18 10 3 Year 893 224 2 $ 101 31 70 21 13 3 16 35 种味道 $ 116 36 80 24 16 From year 5 onward, EBITDA, depreciation, and investment are expected to remain unchanged at year-4 levels. Laputa is financed 40% by equity and 60 % by debt. Its cost of equity is 12%, its debt yields 8%, and it pays corporate tax at 30% $ 121 a. Estimate the company's total value Note: Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole amount. b. What is the value of Laputa's equity? Note: Do not round intermediate calculations. Enter your answer in millions rounded to the…In your first job with TBL Inc. your task is to consider a new project whose data are shown below. What is the project's Year 1 cash flow? The annual operating cash flows of the project can be calculated as follows: OCF = {[Sales - Operating Costs]*(1-Tax Rate)} + (Depreciation * Tax Rate) Sales revenues $225,250 Depreciation $78,847 Other operating costs $92,000 Tax rate 18%Blossom Company is considering two alternatives. Alternative A will have revenues of $145,100 and costs of $104,800. Alternative B will have revenues of $184,300 and costs of $121,900. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Alternative A $ 145100 Revenues Costs Net Income 104800 40300 Alternative B Vis better than Alternative A Alternative B Net Income Increase (Decrease) 184300 $ 39200 i 121900 62400 17100 22100
- What is the profitability index of a project that costs $10,000 and provides cash flows of $3,600 in years 1 and 2 and $5,600 in years 3 and 4? The discount rate is 9% Note: Do not round intermediate calculations. Round your answer to 4 decimal places. Answer is complete but not entirely correct. Profitability index 1.4624An investment has an installed cost of $787,350. The cash flows over the four-year life of the investment are projected to be $312,615, $304,172, $245,367, and $229,431. a. If the discount rate is zero, what is the NPV? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. If the discount rate is infinite, what is the NPV? (A negative answer should be indicated by a minus sign. Do not round intermediate calculationsAs assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data. What is the Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. Sales revenues $11,900 Operating costs $5,430 Tax rate 20.0%
- Companies invest in expansion projects with the expectation of increasing the earnings of its business. Consider the case of Garida Co.: Garida Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs: Year 1 Year 2 Year 3 Year 4 Unit sales 3,500 4,000 4,200 4,250 Sales price $38.50 $39.88 $40.15 $41.55 Variable cost per unit $22.34 $22.85 $23.67 $23.87 Fixed operating costs $37,000 $37,500 $38,120 $39,560 This project will require an investment of $20,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t = 0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project's four-year life. Garida pays a constant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NPV) would be under the new tax law. Which of the following most closely approximates what…Based on the pro - forma income statement, please estimate OCF and complete the tables. Sales 125,000 Variable costs -29, 000 Fixed costs -30,000 Depreciation -12,800 EBIT 53, 200 Tax -18, 620 NI 34, 580 Enter your final answers as whole numbers without using 1000 separators. Use a " -" sign for cash costs, expenses, cash outflows. (1) Starting from EBIT EBIT + Depreciation - Tax OCF? = OCF What is EBIT? What is Depreciation? What is Tax? What isA proposed new project has projected sales of $174,000, costs of $88,500, and depreciation of $24,500. The tax rate is 23 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.) EBIT + Depreciation - Taxes Top-down Tax-shield Bottom-up Operating cash flow
- Calculating Break-Even In each of the following cases, find the unknown variable.Ignore taxes. Accounting Break-Even Unit Price Unit Variable Cost Fixed Costs Depreciation 95,800 $ 42 $ 30 $ 820.000 ? 143,806 ? 64 2,750,000 $ 1.150.000 7,835 97 ? 245,000 105,000A project has the following estimated data: Price = $46 per unit; variable costs = $31 per unit; fixed costs $19,000; required return = 15 percent; Initial investment $18,000; life = six years. a. Ignoring the effect of taxes, what is the accounting break-even quantity? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the cash break-even quantity? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the financial break-even quantity? (Do not round Intermedlate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the degree of operating leverage at the financial break-even level of output? (Do not round Intermedlate calculations and round your answer to 3 decimal places, e.g., 32.161.) Accounting break-even quantity a. b. Cash break-even quantity с. Financial break-even quantity d. DOL eg EA9F9D41-D35...jpeg 8A1B4474-4751..jpeg…