3Using the weighted average net income from below, calculate the net cash flows to invested capital.4 Assume depreciation is $400000, capital expenditures are $300,000, additions to net working capital are5 $100,000 plus $60,000 interest expense net of the deduction resulting from interest as a tax deduction.678Weight5432115$ 1,361,661$836,34220229202110 202011201912 2018131415 Weighted average (Rounded)161718192022 Weighted average adjusted net income24 Non-cash charges (e.g. depreciation, amortization, deferred revenue, deferred taxes)26 Capital expenditures necessary to support projected operations28 (Additions) deletions to net working capital necessary to support projected operations30 Interest expense (net of tax deduction resulting from interest as a tax deductible expense)32 Weighted net cash flows to invested capital33$ 521,057$ 707,770$ 721,8294,148,659Sample CompanyWeighted Average Net Cash Flows to Invested CapitalDecember 31, 2022$GA$Weighted

Here,Depreciation is $400,000Capital Expenditure is $300,000Addition to net working capital is…

Answered: Using the weighted average net income…

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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1. Net Operating Capital for 2022 2. Amount of Total Investor-Supplied (Net Current Investment and Net Fixed Asset Investment) operating capital for 2022 3. Free Cash Flow for 2022 Net Operating Working Capital for 2022 4. Net Operating Profit After Taxes for 2022
For the cash flows shown in the diagram, determine the value of x and 2x that will make the future worth in year 12 equal to $250,000. The value of x is determined to be $..... The value of 2x is determined to be $......
If discretionary expenses are $500, cash flow before discretionary expenses are $2,000, and discretionary capital expenditures are $500, what is the discretionary payout percentage? A. 50% B. 25% C. 20% D. 250%
The following is a four-year forecast for Torino Marine. Year 2022 2023 2024 2025 Free cash flow ($ millions) −60 81 98 120 Estimate the fair market value of Torino Marine at the end of 2021. Assume that after 2025, earnings before interest and tax will remain constant at $200 million, depreciation will equal capital expenditures in each year, and working capital will not change. Torino Marine’s weighted-average cost of capital is 13 percent and its tax rate is 20 percent. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place. Estimate the fair market value per share of Torino Marine’s equity at the end of 2021 if the company has 45 million shares outstanding and the market value of its interest-bearing liabilities on the valuation date equals $350 million. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. I have the second question right…
What is Declan's Designs' 2020 Cash Flows from Investing Activities? Question 26 options: Decrease of $22,000 Decrease of $16,000 Increase of $16,000 Increase of $22,000
Calculate the Payback Period using the following Information All figures are in OMR Initial Investment = 25000 Cash Flow after Tax(CFAT) are as follows : Year 1 : 5000 Year 2 : 5000 Year 3 : 5000 Year 4 : 4000 Year 5 : 6000 4 Years and 6 months 5 Years 5 Years 2 Years
a) Find the relevant cash flows for each of the relevant periods (Time 0 – Time 9). Operating cash flows for Time 1-8 should include: Earnings before taxes Taxes (30%) Net Income Depreciation Free Cash flows b) Calculate the NPV, IRR and Payback Period for the cash flows and indicate whether BGM should pursue the mining project or not.
Required information [The following information applies to the questions displayed below.] NPV IRR Gunnell Incorporated is considering two mutually exclusive 10-year investments. The initial cash outlays and expected net after-tax cash flows are shown below. Initial Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Project 1 $(2,500,000) Project 1 200,000 200,000 235,000 280,000 325,000 450,000 500,000 600,000 700,000 900,000 Required: 1. Using Excel, calculate the NPV and IRR of each project. Assume Gunnell Incorporated uses a discount rate of 8%. (Round your NPV answer to the nearest dollar amount and your IRR answer to 2 decimal places (i.e. 0.1234 = 12.34%).) % Project 2 $(1,800,000) 400,000 375,000 350,000 350,000 325,000 200,000 185,000 170,000 160,000 130,000 Project 2 %
Given the following data for Year 1: Earnings before Interest and Tax = $11 million; Interests = $3 million, Taxes = $2 million; Depreciation = $4 million; Investment in fixed assets = 5 million; Investment net working capital = $1 million. Calculate the free cash flow (FCF) for Year 1: Group of answer choices $8 million $9 million $6 million $7 million
Please help me please show your calculation
Calculate the operating cash flows from the following data: Sales: $2,190,000 Cost: $815,000 Depreciation: $290,000 Tax rate: 21% Life: 3 years $857,150 O $1,147,150 O$1,085,000 O s1,375,00
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