HiWay Furniture has sales of $316,000, depreciation of $47,200, interest expense of $41,400, COGS of $148, 200, and taxes of $16,632. Net property plant and equipment increased by $36, 400 for the year and there was a decrease in net working capital of $14,300. What is the free cash flow for the year?

HiWay Furniture has sales of $316,000, depreciation of $47,200, interest expense of $41,400, COGS of $148, 200, and taxes of $16,632. Net property plant and equipment increased by $36, 400 for the year and there was a decrease in net working capital of $14,300. What is the free cash flow for the year?

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

Section: Chapter Questions

Problem 1PS

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7. A company that makes clutch disks had the cash flows shown below for one department with a MARR of 25%. Calculate the rate of return by using return on invested capital approach with a reinvestment rate of 15% per year. Should the company continue to make clutch disks? Year Cash Flow, $ Ft 1500 1 -1800 2 600 -570 3.
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Six years ago, ABC Company invested $47,736 in a new machinery. The investment in net working capital was $9,046 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $17,745. Today, the book value of the machinery is $11,017. The tax rate is 35 percent. What are the terminal cash flows in Year 6? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
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