You have forecast pro forma earnings of $1,100,000 This includes the effect of $226,000 in depreciation. You also forecast a decrease in working capital of $105,000 that year What is your forecast of free cash flows for that year? The free cash flows from eamings will be $(Round to the nearest dollar)
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- Kabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Year Cash Outflow Cash Inflow Net Cash Flow Cumulative Cash FlowThe financial manager of the company SFT Inc. made the following forecasts concerning the free cash flow for years XX + 1 to XX + 4: Years Free cash flowXX+1 300 000XX+2 375 000XX+3 400 000XX+4 380 000 According to the finance manager's forecast, the company's free cash flow is expected to increase at an annual rate of 5% from year XX + 5 for the foreseeable future. Knowing that the weighted average cost of capital after tax for this company is 15%, estimate:1. The residual value of the company in year XX + 42. The overall value of the companyFor the following cash flow, calculate the equivalent AW. Assume i= 8% per year. Year Incomes Outcomes 4600 1 4600 2 6000 4600 7000 4600 4 8000 4600 9000 10000 Answer: 3.
- You are considering a $7,000 investment. The table shows the possible outcomes in cash flow next year. What is the standard deviation of the returns? Round your answer to the nearest tenth. table 1.4% 2.8% 6.0% 8.1% Probability Possible Cash Flow $925 $680 S485 0.1 0.2 0.4The free cash flows (in millions) shown below are forecast by Simmons Inc. If the weighted average cost of capital is 13% and the free cash flows are expected to continue growing at the same rate after Year 3 as from Year 2 to Year 3, what is the Year 0 value of operations, in millions? Year: 1 Free Cash Flow: -$20, Year 2 Free Cash Flow: $44, Year 3 Free Cah Flow: $47.Consider the following cash flow profile: Suppose the positive-valued cash flows are now replaced by a geometric series. If the cash flow at end of year 1 is $10,000, what geometric rate is required for the cash flow profiles to be equivalent? Interest is at a compounded annual rate of 6%.
- The table below shows the forecast cash flow information of Good Time Inc. for the nextyear. The required debt payment in the next year is $88 million, with a current market valueof $60 million. The company pays no tax. If you invest in the corporate debt of Good TimeInc. today, what is your expected return on this investment? hand write pleaseThe table shows the forecast cash flow information of Good Time Inc. for the nextyear. The required debt payment in the next year is $88 million, with a current market valueof $60 million. The company pays no tax. If you invest in the corporate debt of Good TimeInc. today, what is your expected return on this investment?ASAP Assume that investing $ 1,000 entitles you to a ten-year cash flow thatyields $ 100 the following year and grows at an annual rate of 3% since then (Xk = 100 (1.03)k-1 , k = 1,. . . , 10). A) Determine the present values of cash flow for nominal interest rates of 1%, 2%. B) what is internal rate of return on cash flow?
- Perez Company is considering an investment of $26,945 that provides net cash flows of $8,500 annually for four years. (a) What is the internal rate of return of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals. (b) The hurdle rate is 7%. Should the company invest in this project on the basis of internal rate of return? Complete this question by entering your answers in the tabs below. Required A Required B What is the internal rate of return of this investment? Present value factor Internal rate of return %You invest in a company which expects to pay you the following amounts in return each year. Year 1: $1,100, Year 2: $2,100, Year 3: $1,600, Year 4: $2,100, and Year 5 $1,500. If an annual interest rate is 5 percent, what is the present value of this uneven cash flow stream? $7,883 $7,807 $7,563 $7,237Kabab Co. is considering a $240,000 investment, which will provide net returns of $110,000, $160,000, and $220,000 in the second, third, and fourth years, respectively. What is the payback period? Round up to the next month Use the following table: Cumulative Cash Cash Outflow Çash Inflow Net Cash Year Flow Flow 2 years and 10 months Ob. 2 years and 9 months 2 years and 11 months Od. 2 years and 8 months