esCurrently, Atlas Tours has $5.4 million in assets. This is a peak six-month period. During the other six months temporary current assetsdrop to $400,000 (for computation purposes still consider these temporary current assets).Temporary current assetsPermanent current assetsCapital assetsTotal assets$1,200,0001,800,0002,400,000$5,400,000Short-term rates are 4 percent. Long-term rates are 5 percent. Annual earnings before interest and taxes are $1,080,000. The tax rateis 38 percent.a. If the assets are perfectly hedged throughout the year, what will earnings after taxes be? (Enter answers in whole dollar, not inmillion.)Earnings after taxes$b. If short-term interest rates increase to 5 percent when assets are at their lowest level, what will earnings after taxes be? For anexample of perfectly hedged plans, see Figure 6-8 (Enter answers in whole dollar, not in million.)Earnings after taxes$

The objective of the question is to calculate the earnings after taxes for Atlas Tours under two…

Answered: es Currently, Atlas Tours has $5.4…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 19P

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Fill in the shown table below when P = $10,000, S = $2,000 (at the end of four years), and i = 15% per year. Complete the accompanying table and show that the equivalent uniform CR amount equals $3,102.12.
To calculate the change in Net Working Capital (NWC) during FY24, we first need to find the NWC for both FY23 and FY24 using the formula: NWC=Current Assets−Current Liabilities Step 1: Calculate NWC for FY23 Current Assets (FY23): Cash: 211,000,000 Accounts Receivable: 508,000,000 Inventory: 41,000,000 Total Current Assets (FY23): 760,000,000 Current Liabilities (FY23): Accounts Payable: 622,000,000 Notes Payable: 377,000,000 Total Current Liabilities (FY23): 999,000,000 NWC (FY23)=760,000,000−999,000,000=−239,000,000 Step 2: Calculate NWC for FY24 Current Assets (FY24): Cash: 329,800,000 Accounts Receivable: 626,800,000 Inventory: 100,400,000 Total Current Assets (FY24): 1,057,000,000 Current Liabilities (FY24): Accounts Payable: 531,000,000 Notes Payable: 442,000,000 Total Current Liabilities (FY24): 973,000,000NWC (FY24)=1,057,000,000−973,000,000=84,000,000 Step 3: Calculate the Change in NWC during FY24 Change in NWC=NWC (FY24)−NWC…
General accounting
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The following details are provided by a manufacturing company: Investment Useful life Estimated annual net cash inflows for first year Estimated annual net cash inflows for second year Estimated annual net cash inflows for next ten years Residual value Product line $1,170,000 12 years $500,000 $360,000 $360,000 $50,000 Depreciation method Straight-line 14% Required rate of return Calculate the payback period for the investment. (Round your answer to two decimal places.) OA. 2.34 years OB. 2.77 years OC. 2.86 years OD. 2.94 years
HANDWRITTEN:The MARR is 6% per year. The annual worth of company 2 cash flow estimates is closest to: Note that this three are mutually exclusive alternatives.
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The company Los Buenos S.A. has an investment for a total amount of $450,000.00, and unequal flows as detailed below. Calculate the recovery period of the item, detail its result in years, months and days. Year Amont 1 125,000.00 2 140,000.00 3 152,000.00 4 125,000.00 5 112,000.00 6 132,000.00
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