F Question ViewerCost of Goods Sold- Depreciation= EBIT- Taxes (20%).= Unlevered net income+ Depreciation- Additions to Net Working Capital- Capital Expenditures= Free Cash FlowYear 0A. 17%B. 30%C. 25%D. 22%_-400000_Year 1424897.541- 165000- 85000174897.541- 34979.508139918.03385000- 20000Year 2424897.541- 165000- 85000174897.541- 34979.508139918.03385000- 20000Year 3424897.541- 165000- 85000174897.541- 34979.508139918.03385000- 20000204918.033204918.033204918.033Visby 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. By how much could thediscount rate rise before the net present value (NPV) of this project is zero, given that it is currently 8%?

Internal rate of return refers to the minimum percentage of return or the rate of return of the…

F Question Viewer Cost of Goods Sold - Depreciation = EBIT - Taxes (20%) = Unlevered net income + Depreciation - Additions to Net Working Capital - Capital Expenditures = Free Cash Flow O A. 17% OB. 30% OC. 25% O D. 22% Year O 0000 Year 1 424897.541 - 165000 Year 2 424897.541 - 165000 _-85000_ _-85000__ __-85000___ 174897.541 174897.541 174897.541 -34979.508 139918.033 _-400000__ -34979.508_-34979.508 139918.033 85000 - 20000 139918.033 85000 - 20000 Year 3 424897.541 - 165000 204918.033 204918.033 204918.033 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. By how much could the discount rate rise before the net present value (NPV) of this project is zero, given that it is currently 8%? 85000 - 20000

F Question Viewer Cost of Goods Sold - Depreciation = EBIT - Taxes (20%) = Unlevered net income + Depreciation - Additions to Net Working Capital - Capital Expenditures = Free Cash Flow O A. 17% OB. 30% OC. 25% O D. 22% Year O 0000 Year 1 424897.541 - 165000 Year 2 424897.541 - 165000 _-85000_ _-85000 -85000___ 174897.541 174897.541 174897.541 -34979.508 139918.033 _-400000__ -34979.508_-34979.508 139918.033 85000 - 20000 139918.033 85000 - 20000 Year 3 424897.541 - 165000 204918.033 204918.033 204918.033 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. By how much could the discount rate rise before the net present value (NPV) of this project is zero, given that it is currently 8%? 85000 - 20000

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

See similar textbooks

Similar questions

Data needed: SFP Asset section 1. Cash 16.3% 2. AR 6.3% 3. Short term investment 0.2% 4. Inventory 2.2% 5. Prepaid expenses 0.4% 6. PPE 74.7% Data needed: SFP Liabilities and OE section. 1. Current liab 16% 2. Non-current liab 34.2% 3. OE 49.9% Data needed: SCI 1. COGS 38.6% 2. Selling and admin exp 6.8% 3. Interest exp 0.1% 4. Income tax exp 0.5% 5. Net income 54%
A company is considering expanding its production line. Cost for the the equipment for the expansion: Annual incease in sales: Number of years of the project: Annual operating costs other than depreciation: The company's tax rate: There is no change in Working Capital $200,000 $125,000 3 $50,000 35% The equipment will be depreciated on a 3 year straight line basis with 0 salvage value. At the end of 3 years the equipment disposed of at no cost or sale. Calcualte the Net Free Cash Flow for years 0 and 1 only as listed below. Do not use commas, decimals, or dollar signs. Enter negative numbers with a minus sign.
QUESTION 1 Given the following information Please calculate the Free Cash Flow to Equity EBIT Net Income Tax rate Depreciation Capital expenditure 2207.9 1513.5 21.80% 1807.1 954.6 Change in non-cash Working Capital -2176.3 Change in long term debt Interest Expense Liabilities Total Long Term debt Total Assets 4755 5470 3902 5628 927.6 395.3 24511.8 13220.6 26168.2
Income Statement for CharmCorp: Total sales Cost of sales Gross Profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating Income Other income Earnings before interest and taxes (EBIT) Interest income (expense) Q Search OA. $1.60 OB. $2.40 OC. $1.00 OD. $2.00 2008 600 -532 68 36 87년에 -4 23 24 -7 2009 540 - 488 52 ܘܕܢܕ 21 26 -7 21 Time Remaining: 01:04:54
Year Cash Flow 0 −$8,200 1 2,500 2 4,100 3 3,900 What is the profitability index for the cash flows if the relevant discount rate is 10 percent? A. 1.079 B. 1.100 C. 0.995 D. 1.016 E. 1.048 What is the profitability index for the cash flows if the relevant discount rate is 16 percent? A. 0.939 B. 0.967 C. 0.986 D. 0.892 E. 0.911 What is the profitability index for the cash flows if the relevant discount rate is 26 percent? A. 0.795 B. 0.819 C. 0.834 D. 0.755 E. 0.771
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Tasks/ calculation these questions are :- by 6 functions are : 1. Accumulative (future) money value 1/ Simple interest FV=PV*(1+* ? *N) 2/ Aggregate interest FV=PV (1+ ? )N 2. Present money value PV = FV * ^note N- total times of getting income^ R= ?????? ??? / N n- frequency of income generation per year 3. Present payment value PV = PMT * 4. Future payment value (PMT) FV = PMT * 5. Amortization payment PMT = PV * 6. Solatium fond factor (SFF) PMT = FV * Q1/ The investor wants to invest in the purchase of an office building. He suggests he can rent it out for 10 years at an annual rent of 1,850,000. At the end of the tenth year it is expected to sell the company for 18 million d.e. Income rate 20% What is the current value of the building?
Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $ (3,500,000.00) ($3,500,000.00) 1 $ 900,000.00 0.90909 $ 818,181.00 $818,181.82 2 $ 900,000.00 0.82645 $ 743,805.00 $743,801.65 3 $ 900,000.00 0.75131 $ 676,179.00 $676,183.32 4 $ 900,000.00 0.68301 $ 614,709.00 $614,712.11 5 $ 900,000.00 0.62092 $ 558,828.00 $558,829.19 Net Present Value $ (88,298.00) $ (88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. start with 5% increase for Year 1 net cash flow. Year Net Cash Flow 0 $…
Year Net Cash Flow Discount Factor Present Value (using the factor) Present Value (using Excel formula) 0 $ (3,500,000.00) 1 $(3,500,000.00) ($3,500,000.00) 1 $900,000.00 0.90909 $818, 181.00 $818, 181.82 2 $ 900,000.00 0.82645 $743,805.00 $743, 801.65 3 $900,000.00 0.75131 $676, 179.00 $676, 183.32 4 $ 900,000.00 0.68301 $614,709.00 $614,712.11 5 $900,000.00 0.62092 $558, 828.00 $558,829.19 Net Present Value $(88,298.00) $(88,291.91) 3. Now assume that inflation is estimated as a 5% increase each year (starting with Year 1) for the entire 5 years. Calculate the new net cash flow values for each year. Hint: You should start with 5% increase for Year 1 net cash flow.
Partial Income Statement Excel Exercise Compute the Following ՀԱՐ Sales COGS SG&A Depreciation Debt Int. Rate Tax Rate* 2019 100 40 EBITDA EBIT 25 Interest 10 EBT 0.08 Tax 0.25 Net Income ? ? ? ? ? ? Partial Balance Sheet Debt and Loans 150 Total Equity 150 Total Assets 300 Inv. Change 10 A/R Change A/P Change 35 20 Net Profit Margin Equity Multiplier Verify Dupont ROE ? סיי ? ? ? ? ? * Assume all taxes paid in current period (no accrued taxes) for rest of course CF from Operations ROE Asset Turnover CED Tt O 24
Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %18. Cash Flow Year 0 1 2 3 4 5 6 Select one: a.0.3073 b.0.2988 c.0.2565 d.0.2638 e.0.3491 f.0.2783 -3000 2000 4000 -1000 3000 4000 -5000 9000
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