Calculate: Profits before and after taxes Change in cash EBITD Coverage ratio REVENUE                             400,000 OPERATING COSTS          250,000 DEPRECIATION                  25,000 INTEREST                             20,000 PROFITS TAX                      20%

Q: Knowledge Check 01 Wallis Company has an annual depreciation deduction of $50,000. At a tax rate of…

A: Introduction of depreciation as an expense and reduced taxable income:Depreciation expense can have…

Q: T loorie $19 0 2,600 2,000 g=11% 2 2,500 3,000 3,500 1,700(1.11)² 1,700(1.11) 1,700 4,000 5 6 7 8 9…

A: Present worth is the equivalent value of the future cash flow based on the time value of money and…

Q: What's the impact on [Cash Flow] if depreciation increases by $10? Assuming the effective tax rate…

A: Solution:Depreciation is a non-cash expense which is incurred by the continuous of asset. It is the…

Q: Free Cash Flow A company has an EBIT of P30,000,000, depreciation of P5,000,000, and a 40% tax rate.…

A: Given Information:  EBIT =P 30,000,000 Tax = 40%  New Fixed Assets ( Capital Expenditure)  = P…

Q: Using the data that is shown below - (a) calculate the individual after-tax cash flow effect of each…

A: After-tax revenue = Revenue ( 1 - Tax ) After tax operating expense = Operating expenses * ( 1 - Tax…

Q: Consider the following cash flows: Year Cash Flow -$29,900 13,800 15,100 11,500 1 3 a. What is the…

A: Profitability index measures the return generated by each dollar of investment. Itcan be calculated…

Q: EOY Net Cash FloW -$18,000 +$1,800 +$2,160 +$2,592 +$4,100 +$2,700 +S3,000 +$3,300 +$3,600 1 3 4 5 7…

A: Present worth of cash flow or outflow may be calculated by using present value factor at the given…

Q: Given the cash flow from assets reported in the table provided, what is the value of the asset at…

A: Cash Flow Value refers to the present value of expected future cash flows generated by an…

Q: What is the net present value of the following set of cash flows at a discount rate of 5 percent? at…

A: Net Present Value(NPV) is excess of PV of inflows over PV of outflows that is computed by…

Q: a. What are the incremental earnings for this project for years 1 and 2? (Note: Assume any…

A: The value of cash available to a corporation after covering the costs of doing business is measured…

Q: The net present value (NPV) the cash flows from T=0 to T=3 is $2278 when using a 10% discount rate.…

A: Net present value = Total Present value of all years cash flows - initial investment, applying the…

Q: Consider the following operating results for the past year for Sanitation Inc.: Sales = $22,561…

A: Operating cash flow is the cash flow generated from the operations of the company.Sales =…

Q: After-Tax Cash Flows Using the data that is shown below - (a) calculate the individual after-tax…

A: Net after-tax cash flows = Cash revenues - Cash operating expenses + Tax savings on depreciation

Q: Consider the accompanying cash flow diagram. Compute the equivalent annual worth at i = 8%. $2,000…

A: Equivalent annuity is the annual cash flow having same present value as that of given cash flow…

Q: Revenues - Manufacturing Expenses - Marketing Expenses - Depreciation =EBIT - Taxes (20%) =Unlevered…

A: Cost of capital is 12% To Find: Manufacturing breakeven point

Q: None

A: To calculate Logitech Limited's Operating Cash Flow (OCF), we need to follow these steps:Step 1:…

Q: calculate annual cash flow of $250000 invested at 6%

A:

Q: Find the present value of the following stream of a firm's cash flows, assuming that the firm's…

A: The objective of this question is to calculate the present value of a series of future cash flows.…

Q: Cost of goods sold = 100,000 Merch at Beginning = 50,000 Merch at End = 45,000 Acct Payable…

A: Given that: Cost of goods sold = 100,000 Merch at Beginning = 50,000Merch at End = 45,000 Acct…

Q: What is the present value of the following cash flow stream at a rate of 6.5%? Years: CFS: 0 $750 1…

A: Year 0123Cash flow                                     $ 750.00                            $…

Q: A. 20Y5 Annual net cash flow is incorrect. B.  Present value of annual net cash flow   Less…

A:

Q: If the property before tax cashflow (PBTCF) in a given year is $125,000, total debt service is…

A: The Equity after tax cash flow of the investor is that income after deducting all expenses and tax.

Q: Use the cash flows and competitive spreads shown in the table below.       ($ millions)     Year 0…

A: As per the given information: Investment 120Production 42 (Year 2) 82 (Year 3-10)Spread - .97Net…

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: For the following cash flow, calculate the equivalent PW. Assume i % 8% per year. Cash Inflow, $…

A: Equivalent PW stands for Equivalent Present Worth which is used to compare different investment…

Q: Use the following information Year 0 1 2 3 Cash flow -$1000 $300 $500 $700 WACC= 8.0% Calculate:…

A: The difference between the current value of cash inflows and outflow of cash over a period of time…

Q: What is the total Wealth Accumulation of the following available after tax reinvestment rate is 5%?…

A: Total Wealth Accumulated refers to the total amount accumulated after compounding at a specified…