Calculating operating cash​ flows)   The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of ​$3,000,000 per year. The project will also involve annual cash expenses​ (including both fixed and variable​ costs) of ​$900,000​, while increasing depreciation by ​$400,000 per year. If the​ firm's tax rate is 34​%, the​ project's estimated net operating profit after taxes​ (NOPAT) is ​$ (Round to the nearest​ dollar.) What is the​ project's annual operating cash​ flow?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Calculating operating cash​ flows)  

The Heritage Farm Implement Company is considering an investment that is expected to generate revenues of ​$3,000,000 per year. The project will also involve annual cash expenses​ (including both fixed and variable​ costs) of ​$900,000​, while increasing depreciation by ​$400,000 per year.

If the​ firm's tax rate is 34​%, the​ project's estimated net operating profit after taxes​ (NOPAT) is ​$

(Round to the nearest​ dollar.)

What is the​ project's annual operating cash​ flow?

 

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