Need Answer Operating cash flow :Question :21Ben's Border Cafe' is considering a project which will producesales of $16,000 and increase cash expenses by $10,000. If theproject is implemented, taxes will increase from $23,000 to$24,500 and depreciation will increase from $4,000 to $5,500.What is the amount of the operating cash flow using the top-down approach?a. $4,000b. $4,500c. $6,000d. $7,500

Step 1: Definition of SalesSales can be defined as a commercial activity carried on by every…

Answered: Operating cash flow :Question :21 Ben's…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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Ronnie's Coffee House is considering a project which will produce sales of $6,000 and increase cash expenses by $2,500. If the project is implemented, taxes will increase by $1,300. The additional depreciation expense will be $1,000. An initial cash outlay of $2,000 is required for net working capital. What is the amount of the operating cash flow using the top - down approach? Question 23 Select one: a. $4,200 b. $3,500 c. $2,200 d. $1,500 e. $200
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Operating cash flow using the top down approach?
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Your company has a project available with the following cash flows: Year Cash Flow -$80,700 21,700 25,400 31,200 3 4 26,200 20,200 If the required return is 15 percent, should the project be accepted based on the IRR? Multiple Cholce No. because the IRR Is 16.51 percent. Yes, because the IRR Is 17.88 percent. Yes, because the IRR Is 17.19 percent. Yes, because the IRR Is 16.51 percent. No, because the IRR Is 17.88 percent.
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Your company has a project available with the following cash flows: Year Cash Flow -$81,100 21,500 1 2 25,000 3 30,800 26,000 19,800 4 If the required return is 14 percent, should the project be accepted based on the IRR? Multiple Cholce Yes, because the IRR Is 16.41 percent. Yes, because the IRR Is 17.07 percent. No, because the IRR Is 17.07 percent. Yes, because the IRR Is 15.75 percent. No, because the IRR Is 15.75 percent.
Datta Computer Systems is considering a project that has the following cash flow data. What is the project’s IRR? Year 0 1 2 3 Cash flows −$1,200 $350 $570 $690 Group of answer choices 9.70% 10.78% 13.31% 14.50% 11.98%

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