Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphanyplans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has preparedthe following incremental cash flow projects:I need help to see how I could plug these numbers in my calculator. If you could show me how you found NPV in your calculator. YearSales (Revenues)- Cost of Goods Sold (50% of Sales)- Depreciation= EBIT- Taxes (35%)= unlevered net income+ Depreciation+(-) increase/(decrease) in workingcapital- capital expenditures0123150,000 150,000 150,00075,000 75,000 75,00025,000 25,000 25,00050,000 50,000 50,00017,50017,500 17,50032,500 32,500 32,50025,00025,000 25,0005,0005,000 -10,000-90,000The net present value (NPV) for Epiphany's Project is closest to

NPV Formula: NPV = -Initial Investment + CF₁/(1+r)¹ + CF₂/(1+r)² + CF₃/(1+r)³Where r = 12% = 0.121.…

Year Sales (Revenues) - Cost of Goods Sold (50% of Sales) - Depreciation = EBIT - Taxes (35%) = unlevered net income + Depreciation +(-) increase/(decrease) in working capital - capital expenditures 0 1 2 3 150,000 150,000 150,000 75,000 75,000 75,000 25,000 25,000 25,000 50,000 50,000 50,000 17,500 17,500 17,500 32,500 32,500 32,500 25,000 25,000 25,000 5,000 5,000 -10,000 -90,000 The net present value (NPV) for Epiphany's Project is closest to

Year Sales (Revenues) - Cost of Goods Sold (50% of Sales) - Depreciation = EBIT - Taxes (35%) = unlevered net income + Depreciation +(-) increase/(decrease) in working capital - capital expenditures 0 1 2 3 150,000 150,000 150,000 75,000 75,000 75,000 25,000 25,000 25,000 50,000 50,000 50,000 17,500 17,500 17,500 32,500 32,500 32,500 25,000 25,000 25,000 5,000 5,000 -10,000 -90,000 The net present value (NPV) for Epiphany's Project is closest to

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 8EP

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Use the table for the question below. Revenues -Cost of Goods Sold -Depreciation =EBIT -Taxes (30%) =Profit after tax +Depreciation -Change in NOWC -Capital Expenditures =Free Cash Flow Year 0 a. by 22.5% O b. by 19.5% c. by 25.5% d. by 27.5% -300,000 Year 1 400 000 -180 000 -100 000 120 000 -36 000 84 000 100 000 -20 000 164 000 Year 2 400 000 -180 000 -100 000 120 000 -36 000 84 000 100 000 -20 000 164 000 Year 3 400 000 -180 000 -100 000 120 000 -36 000 8 000 100 000 -20 000 164 000 Visby Rides, a limousine hire company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. By how much could the opportunity cost of capital rise before the net present value (NPV) of this project is zero, given that it is currently 10%?
Revenues - Cost of Goods Sold - Depreciation =EBIT - Taxes (20%) =Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow Year 0 OA. by 35% OB. by 41% OC. by 69% O D. by 55% Year 1 500,000 - 300,000 Year 2 500,000 - - 100,000 -100,000 165,000-165,000 235,000 -47,000 235,000 -47,000 Year 3 500,000 -165,000 -100,000 188,000 188,000 100,000 100,000 - 20,000 - 20,000 268,000 268,000 Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. Visby learns that a competitor is thinking of offering similar services, thus reducing Visby's sales. By how much could sales fall before the net present value (NPV) was zero, given that the cost of capital is 8%, and that cost of goods sold is 45% of revenues? 235,000 - 47,000 188,000 100,000 - 20,000 268,000
Revenues -Cost of Goods Sold -Depreciation =EBIT -Taxes (20%) -Unlevered net income +Depreciation -Additions to Net Working Capital -Capital Expenditures =Free Cash Flow Year 0 OA. by 38% OB. by 64% OC. by 51% OD. by 32% Year 2 475,000 -155,000 - 95,000 Year 1 475,000 - 155,000 - 95,000 225,000 225,000 225,000 -45,000 -45,000 -45,000 - 300,000 Year 3 475,000 - 155,000 - 95,000 180,000 95,000 - 20,000 255,000 255,000 Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. Visby learns that a competitor is thinking of offering similar services, thus reducing Visby's sales. By how much could sales fall before the net present value (NPV) was zero, given that the cost of capital is 10%, and that cost of goods sold is 45% of revenues? 180,000 95,000 - 20,000 180,000 95,000 - 20,000 255,000
p3-10
Need help calculating: A. Economic value added and B. Return on Capital
Please help solve
Years Revenue Cash Expense Book Depreciation Book Income Pre-Tax Book Tax at 32% After Tax Book Income Financial Measures Profit Margin % Net Assets ROA % Cashflow Revenue Cash Expense Tax Depreciation Pretax Income Tax at 32% After Tax Income After Tax Cashflow Cumulative Cashflow Payback Period Present Worth 10 PW12 PW15 IRR PV Index(15) Facility Cost Income Tax Rate 0 C. -9.5 d. -12.4 $ 100,000.00 2.2 Years 91740.92679 0.395702526 1 0.684350818 $ 100,000.00 32% $30,000.00 $100,000.00 $120,000.00 $140,000.00 $150,000.00 $150,000.00 $50,000.00 $60,000.00 $70,000.00 $75,000.00 $75,000.00 2 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $20,000.00 $0.20 $20,400.00 $27,200.00 $0.26 $9,600.00 $12,800.00 $16,000.00 $17,600.00 $17,600.00 $20,400.00 ($100,000.00) $40,400.00 $51,040.00 ($100,000.00) -$59,600.00 -$8,560.00 $40,000.00 $50,000.00 $55,000.00 $55,000.00 $0.23 3 $0.45 $36,727.27 $80,000.00 $60,000.00 $40,000.00 $20,000.00 $0.85 $1.87 4 $19,040.00 5 $34,000.00 $37,400.00 $0.24…
Consider the following income statement: Sales $ 383,208Costs 249,312Depreciation 56,700Taxes 25% Calculate the EBIT. Calculate the net income. Calculate the OCF. What is the depreciation tax shield? Pls fast
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Revenues - Manufacturing Expenses - Marketing Expenses - Depreciation =EBIT - Taxes (20%) =Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow Year 0 A. $2.29 million OB. $2.50 million OC. $2.08 million OD. $2.91 million -7 Years 1 to 10 4.4 -0.6 - 0.25 -0.8 2.75 -0.55 C 2.2 +0.8 -0.2 Panjandrum Industries, a manufacturer of industrial piping, is evaluating whether it should expand into the sale of plastic fittings for home garden sprinkler systems. It has made the above estimates of free cash flows resulting from such a decision (all quantities in millions of dollars). There are some concerns that estimates of manufacturing expenses may be low, due to the rising cost of raw materials. What is the break-even point for manufacturing expenses, if all other estimates are correct and the cost of capital is 10%? 2.8 Time Remaining: 00:46:03 Next
Use the following to determine FCF (Free Cash Flow) for the current year. Assume an effective tax rate of 25%: Revenue COGS (Cost of Goods Sold) Gross Profit Wages Expense Rent and Other Occupancy Expense Depreciation Expense Operating Income Current Assets Accounts Receivable Inventory Total Current Assets Gross Fixed Assets (at historical cost) less: Accumulated Depreciation Net Fixed Assets Total Assets Current Year 100,000 67,000 11,500 15,000 1,000 8,500 5,500 50,000 30,000 20,000 Prior Year 4,200 950 8,200 6,000 46,000 29,000 17,000 Current Liabilities Accounts Payable Wages Payable Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234. Show a decrease as a negative figure. Type your answer... 4,500 900