account subject Jenkins plans to generate $650,000 of sales revenue if a capital project is implemented. Assuming a 30% tax rate, the sales revenue shouldbe reflected in the analysis by:a. $195,000 inflow.b. $195,000 outflow.c. $455,000 inflow.d. $455,000 outflow.e. $650,000 inflow.

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

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Jenkins plans to generate $650,000 of sales revenue if a capital project is implemented. Assuming a 30% tax rate, the sales revenue should be reflected in the analysis by: a. $195,000 inflow. b. $195,000 outflow. c. $455,000 inflow. d. $455,000 outflow. e. $650,000 inflow.
Lobers, Inc., has two investment proposals, which have the following characteristics: PROJECT A PROJECT B PROFIT AFTER TAXES NET CASH FLOW PROFIT AFTER TAXES NET CASH FLOW PERIOD COST COST $9,000 $12,000 1 $1,000 $5,000 $1,000 $5,000 1,000 4,000 1,000 5,000 3 1,000 3,000 4,000 8,000 For each project, compute its payback period, its net present value, and its profitability index using a discount rate of 15 percent.
Foster Manufacturing is analyzing a capital investment project that is forecast to produce the following cash flows and net income:
Consider a project with inflows of $20,000 and outflows of $13,000. If the tax rate is 33%, and if the cash flow in Year 1 is $6,500, what is the depreciation amount? Select one: a. $5,485 b. $5,387 c. $5,333 d. $5,438 e. $5,529
2) Assume that you are considering a project. Its initial after-tax cost is $1,500,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $2,900,000 in year2, $2,700,000 in year 3 and $2,300,000 in year 4. a. Roughly calculate the Internal Rate of Return (IRR) of the project. b. Discuss whether you accept the project or not.
Calculate the NPV for the following project, assuming that the cost of capital is 15 percent and that the initial after tax cost of starting the project is $5,000,000. Assume that it will provide after-tax operating cash inflows as shown below:Year 1: $1,800,000 Year 2: $1,900,000 Year 3: $1,700,000 Year 4: $1,300,000 Calculate the IRR for the following project. The initial after tax cost is $5,000,000. The project is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3 and $1,300,000 in year 4? Calculate the IRR for the following project. Assume that its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of ($1,800,000) in year 1, $2,900,000 in year 2, $2,700,000 in year 3 and $2,300,000 in year 4?
Mario Kat, Inc plans a new project. Calculate its IRR. Assume that its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of ($1,800,000) in year 1, $2,900,000 in year 2, $2,700,000 in year 3 and $2,300,000 in year 4?
deep waters inc is using the internal rate of return (IRR) when evaluating projects. Find the IRR for the companys project. The initial outlay for the project is $473, 700. The project will produce the following after tax cash inflows of year I 156,400, year 2- 120,600, year 3 155,700, year 4 178,900 round the answer to two decimal places in percentage form
Foster Manufacturing is analyzing a capital investment project that is forecasted to produce the following cash flows and net income: After-Tax Cash Flows $(20,000) Net Income Year 1 6,000 2,000 6,000 8,000 2,000 3 2,000 8,000 2,000 Using the present value tables provided in Appendix A, the internal rate of return (rounded to the nearest whole percentage) is: а. 5%. b. 12%. C 14%. d. 40%.
Use the information in the table below for the following 5 questions. A capital investment project is estimated to have the following after-tax cash flows, by year: 2 3 4 -$60,000 $20,000 $22,500 $17,500 $25,000 The company utilizes a discount rate of 15% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year. The NET PRESENT VALUE for the project shown above is: O-$4,789.25 O $1,150.33 O $0.00 O $204.90 O $1183.65 Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Crane Inc. is considering an investment project with the following characteristics: internal rate of return factor 3.930; net income $500,000; net annual cash inflow for $140,000; depreciation expense $88,000. What was the amount of the initial investment?
A proposed project is expected to increase accounts receivable by $25,000, decrease inventory by $8,000 and increase accounts payable by $16,000. What is the project's initial requirement for net working capital? Select one: a. +$17,000 b. $1000 c. -$9,000 d. +$9,000

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Jenkins plans to generate $650,000 of sales revenue if a capital project is implemented. Assuming a 30% tax rate, the sales revenue should be reflected in the analysis by: a. $195,000 inflow. b. $195,000 outflow. c. $455,000 inflow. d. $455,000 outflow. e. $650,000 inflow.