Ranger Corporation is currently selling widgets for $40 at a cost of $20 per unit. Fixed costs are currently $500 and the current production is 100 widgets. What is the Operating Cash Flow at this output level?
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Ranger Corporation is currently selling widgets for $40 at a cost of $20 per unit. Fixed costs are currently $500 and the current production is 100 widgets. What is the Operating Cash Flow at this output level?
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- Ranger Corporation is currently selling widgets for $40 at a cost of $20 per unit. Fixed costs are currently $500 and the current production is 100 widgets. What is the Operating Cash Flow at this output level?A project currently generates sales of $17 million, variable costs equal 40% of sales, and fixed costs are $3.4 million. The firm’s tax rate is 30%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $17 million to $18.7 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Req cash flow by b. What are the effects on cash flow, if variable costs increase to 45% of sales? (Input the amount as positive value. Enter your answer in dollars not in millions.) Req cash flow byA factory costs $400,000. You forecast that it will produce cash inflows of $115,000 in year 1. $175,000 in year 2, and $290,000 in year 3. The discount rate is %10. What is the value of the factory?
- (Show the Cashflow Diagram if needed) The amount of raw material required for a certain machine part is 2.05 cm3. The finished part will have a 1.07 cm3 volume. The processing time of each piece is 50 seconds for copper and 35 seconds for aluminum. The cost of copper is P 30.50 per kg, without a scrap value. The cost of aluminum is P55.00 per kg, with a scrap value of P20.00 per kg. The operator wage is P50.00 per hour and the overhead cost is P60.00 per hour. The copper and aluminum weight 0.0091 and 0.0098 kg per cm3, respectively. Which material will you recommend?A project currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $28 million. The firm's tax rate is 40%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $14 million to $15.4 million? (Input the amount as positive value. Enter your answer In dollars not In mllons.) Cash flow increases by s 420,000 b. What are the effects on cash flow, if variable costs increase to 60% of sales? (Input the amount as positive value. Enter your answer In dollars not In mlllons.)MKM International is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machines are in consideration. Machine 1 costs $500,000 but yields a 15 percent savings over the current machine used. Machine 2 costs $900,000 but yields a 25 percent savings over the current machine used. In order to meet demand, the following forecasted cost information for the current machine is also provided.a. Based on the NPV of the cash flows for these five years, which machine should MKM International Purchase? Assume a discount rate of 12 percent.b. If MKM International lowered its required discount rate to 8 percent, what machine would it purchase?Year Projected Cost1 1,000,0002 1,350,0003 1,400,0004 1,450,0005 2,550,000
- A factory costs $300,000. You forecast that it will product cash inflows of $105,000 in year 1, $165,000 in year 2 and $270,000 in year 3. The discount rat is 11%. what is the value of factory? Is the factory a good investment/A factory costs $970,600. You forecast that it will produce cash inflows of $839,085 in year 1, $85,000 in year 2, and $200,000 in year 3. The discount rate is 15.50%. a. Calculate the PV of cash inflows. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ b. Should the company invest in the factor? (Click to select)(Show the Cashflow Diagram if needed) A machine part to be fabricated may be made from alloy of either of two metals. There is an order for 10,000 units. Metal A costs 3 pesos per kg, while Metal B costs 9 pesos per kg. If Metal A is used, the material per unit weighs 110 grams; for metal B, 30 grams. When metal A is used, 50 units can be produced per hour; for metal B, 80 units per hour. Metal B fabrication requires the aid of a tool costing P1,000, which will be useless after the 10,000 units are finished. The machine operator's wage is P50 per hour. If all other costs are identical, determine which material will be more economical to finish the 10,000-unit order. How much is the total cost difference between the use of metal A and metal B?
- Benson Corporation is considering an investment in equipment that would cost $50,000 and provide annual cash inflows of $14,000. The company's required rate of return is 9%; the internal rate of return for the investment is 10.5%. Should the company make this investment?A. Yes, since the internal rate of return is less than the company's required rate of return. B. No, since the internal rate of return is less than the company's required rate of return. C. Yes since the internal rate of return is more than the company's required rate of return. D. The answer cannot be determined.A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000 in year 3. The discount rate is 12%. a. What is the value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Is the factory a good investment?A proposed project has fixed costs of $108,000 per year. The operating cash flow at 6,800 units is $96,600. Ignore the effect of taxes. a. What is the degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) b. If units sold rise from 6,800 to 7,300, what will be the new operating cash flow? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If units sold rise from 6,800 to 7,300, what is the new degree of operating leverage? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
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