General Accounting Question solution Based on the following, what is free cash flow?Cash from Operations $155,000Cash from Investing $(30,000)Cash from Financing $ 30,000Operations includes $2,000 for depreciation. Investing includes the purchase of a replacement assetfor $100,000 and the sale of the one used in production, which is now obsolete, for $70,000.Financing is made up of $70,000 of borrowing and $25,000 of dividends paid.

Step 1: Define Financing Activities:The financing activities of the business include the sale of…

Answered: Based on the following, what is free…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are given the following information. What is the initial cash outflow? Purchase and installation of new equipment $12,000 Sale price of replaced equipment $ 6,000 Book value of replaced equipment $ 3,000 When the new equipment is installed: Inventory increase $ 2,000 Accounts payable increase $ 1,000 Tax rate 40% Group of answer choices $7,400 $11,000 $7,000 $8,600
AG company would like to spend RM 700,000 on buying equipment. The cash inflows as in the Table. Calculate the payback period. Payback Period YEAR CASH FLOW 1 150.000 2 150,000 3 200,000 4 600,000 5 900,000
Jack Sprat Inc. wants to know if they invest 11,548 in new exercise equipment, plus $2.000 for installation. how long before they will receive their initial invest back from future cash flows? What is the payback period for the initial costs? Projected Cash flows Year 1: 5,000 Year 2: 7,000 Year 3: 4,000 Year 4: 1,000 Post your answer as number of years with 2 decimal places, for example 5.55
Consider the table of projected NOI cash flows for a commercial real estate asset below. Year 1 Year 2 Year 3 Year 4 Year 5 $ 150,000 $ 157,500 $ 165,375 $ 173,644 $ 182,326 If the building is sold at the end of Year 3 at a 7.25% going-out cap rate, and 4.50% in selling expenses are incurred, what is the total cash flow (TCF) in year 3?
Assume a $50,000 investment and the following cash flowa for two aleternatives.. Year Investment A Investment B 1 $10,000 $20,000 2 $11,000 $25,000 3 $13,000 $15,000 4 $16,000 5 $30,000 Which alternative would you select under the payback method? 6
Dogwood Company is considering a capital investment in machinery: (Click the icon to view the data.) 8. Calculate the payback. 9. Calculate the ARR. Round the percentage to two decimal places. 10. Based on your answers to the above questions, should Dogwood invest in the machinery? 8. Calculate the payback. Amount invested Expected annual net cash inflow Payback 1,500,000 24 500,000 3 years 9. Calculate the ARR. Round the percentage to two decimal places. Average annual operating income Average amount invested ARR Data Table Initial investment $ 1,500,000 Residual value 350,000 Expected annual net cash inflows 500,000 Expected useful life 4 years Required rate of return 15%
Determine the MIRR using a financing rate of 16% and a reinvestment rate of 20% using the following cash flows: Year Cash Flow 0 1 2 3 4 5 6 7 -60,000 25,000 25,000 -17,000 35,000 35,000 35,000 35,000
MNO company is evaluating a proposal for purchase of equipment which will cost $180,000. The cash inflows from the use of equipment is given below: Year Cash flow S60,000 $40,000 S70,000 S125,000 S35,000 1 3. 4. Payback period for the proposal is: 3 years b. 2 years c. 4 years d. 3.08 years a.
Door to Door Moving Company is considering purchasing new equipment that costs $734,000. Its management estimates that the equipment will generate cash inflows as follows: Year 1 2 3 4 5 $204,000 204,000 262,000 262,000 158,000 Present value of $1: 6% 1 2 3 4 5 0.943 0.890 0.840 0.792 0.747 7% A. $36,312 B. $886,000 OC. $871,928 OD. $786,000 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 0.917 0.842 0.772 0.708 0.650 10% 0.909 0.826 0.751 0.683 0.621 The company's annual required rate of return is 8%. Using the factors in the table, calculate the present value of the cash inflows. (Round all calculations to the nearest whole dollar.)
Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow -$ 29,800 012345 12,000 14,700 16,600 13,700 -10,200 The company uses a discount rate of 13 percent and a reinvestment rate of 6 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Discounting approach MIRR b. Reinvestment approach MIRR c. Combination approach MIRR % % %
What is the answer in the following question and it's cash flow diagram? a.) The purchased price of the equipment is P12,000 and its estimated maintenance costs are P500 for the first year, P1,500 for the second year, and P2,500 for the third year. After three years of use the equipment is replaced, it has no salvage value. Compute the present equivalent cost of the equipment using 10% interest. (capitalized cost)

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