Free Cash Flow A company has an EBIT of P30,000,000, depreciation of P5,000,000, and a 40% tax rate. It needs to spend P10,000,000 on new fixed assets and P15,000,000 to increase its current assets. It expects its accounts payable to increase by P2,000,000, its accruals to increase by P3,000,000, and its notes payable to increase by P8,000,000. The firm’s current liabilities consist of

Q: An investment ot S100,000 yieids a net annuat income of $19,000 at EOY1 which decreases by SLO00 per…

A: Future value(FV) is value of current amount at future date that is computed by compounding current…

Q: The Sandbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can…

A: Total costs :- the whole of a company's costs in producing a specific level of output. It is…

Q: A company takes a loan of $ 500,000 from a bank amortizable in 5 years and with an interest of 8%…

A: Constant amortization systemThe constant amortization system is the simplest amortization system. In…

Q: net present value

A: Difference between present value of cash inflows & outflows is NPV. Formula to calculate the NPV…

Q: This coming year, Mtshali Ltd is expecting sales revenue of R89 million, operating profit (EBIT) of…

A: Given: Interest = R 2 million Debt rate = 10%

Q: Lever Age pays an 10% rate of interest on $10.20 million of outstanding debt with face value $10.2…

A: Rate of interest = 10%Debt = $ 10.20 millionEBIT  = $1.2 millionInterest = 10%* $ 10.20 million =…

Q: ABC Corporation has 9million in inventory and 8m in accounts receivable. A 20% reduction in…

A: Cash conversion cycle refers to the number of days which has incurred in converting the investment…

Q: Acme Bank: Net profit after taxes = $10 million                           Assets = 200…

A: Assets are the total belongings of the business which are used in income generation. Equity is the…

Q: For what interest rate will an uniform cash flow of $40,000 per year for 10 years, (t=1 to 10) be…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: A company has the following net cash inflows. Today -$7000, Year 1-$15 000, Year 2-$9000, Year 3+…

A: Net present value (NPV) of an alternative/project refers to the variance between the initial…

Q: A company is considering two mutually exclusive investments with a discount rate of 10%. The cash…

A: Business Finance The money required for a business to manage its operation is known as finance. It…

Q: If real gets a cash infusion of P1 million each time it needs cash, what are the total costs per…

A: As per Bartleby guidelines, in case of multi-part questions, we are only allowed to answer the first…

Q: A company expects to receive the following cash flows in arrears from a commercial project: Year…

A: Present value:The present value of cash flow is a fundamental financial concept used to determine…

Q: "Consider a firm with sales of $847M, operating costs of $440M, depreciation of $193M, interest…

A: Operating cash flow (OCF) is a financial metric that represents the cash generated or used by a…

Q: Give answer of the question

A:

Q: How much money can a company spend now instead of spending $10,000 in year 3, $20,000 in year 4, and…

A: 3 year future value = $10,000 4 year future value = $20,000 5 year future value = $30,000 Interest…

Q: None

A: Step 1:1.  Step 2:2.

Q: None

A: 1. Estimating the Change in Interest RatesGiven Data:• One-year loans: $10 billion• Five-year loans:…

Q: A company is considering an investment with the Bollars. The general inflation rate (7) during this…

A: The cash flows are in constant dollars. Constant dollars means that the dollar (or the cash flow)…

Q: Viron Corporation has a cash conversion cycle of 100 days and a bank credit line of $5 million at 5%…

A: Cash conversion cycle refers to the number of days which has incurred in converting the investment…

Q: Provide correct answer for this question

A: Step 1: Definition of Corporate ValueCorporate value is the worth or estimation of a business,…

Q: Assume you are considering a USD 100,000 investment for which the future cash flows depend on the…

A: the  normal worth is characterized as the distinction between anticipated benefits and anticipated…

Q: d uniformly. Babylon has the opportu ends, on the average, P45 for every ca

A: The answer has been mentioned below.

Q: 6. Your firm, ABC Berhad, has a payable account amount of SGD1,000,000 in 3 months. Your company is…

A: a) For a forward hedge, the firm would enter into a forward contract to sell SGD1,000,000 at the…

Q: Need help with this question

A: Step 1: Step 2: Step 3: Step 4:

Q: BNB bank estimates that its total revenues will amount to $350 million, and its total expenses…

A: The term revenue represents gross earnings generated from selling goods or services to the…

Q: Want the Correct answer

A:

Q: Want the Correct answer from

A: To find the total corporate value of Boyson Inc., use the perpetuity growth formula for free cash…

Q: A company spends on average €75,000 per week to pay its bills and maintains a lower cash balance…

A: Required:The optimum initial cash balance based on the BAT model.

Q: A corporation has $344 million in sales,$232 million in COGS, $53 million in inventory, $128 million…

A: Cash conversion cycle = [Average inventoryCost of goods sold  + Average receivablesNet sales-Average…

Q: Penco Supply spends £428,000 a week to pay bills and maintains a lower cash balance limit of…

A:

Q: Assume the following: • A company is importing and selling Mercedes cars. • An Islamic bank invests…

A: Computation:

Q: ation of its cash outlay required indicates that it needs P50,000 for the year. The marketable…

A: There are two cost related to cash one is holding cost and other is ordering cost and both…

Q: Average account receivables-60 days, Inventories-85 days, Average account payable-55 days Company…

A: Cash conversion cycle is the period required to recover cash money from business and it shows the…

Q: A company is considering two mutually exclusive investments with a discount rate of 10%. The cash…

A: The place or places from which a company obtains the funds necessary to support its operations are…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.