FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Need helparrow_forwardA proposed new investment has projected sales of $515,000. Variable costs are 41 percent of sales, and fixed costs are $127,000; depreciation is $49,000. Assuming a tax rate of 21 percent, what is the projected net income?arrow_forwardThis is the question, included with this. What is the expected profit for this project? (a) $624,000 (b) $583,000 (c) $564, 000 (d) $1,147,000 (e) $573, 500arrow_forward
- am. 114.arrow_forwardNeed answerarrow_forwardMf1. Consider an asset that costs $492,800 and is depreciated straight-line to zero over its 6-year tax life. The asset is to be used in a 2-year project; at the end of the project, the asset can be sold for $61,600. If the relevant tax rate is 22 percent, what is the aftertax cash flow from the sale of this asset?arrow_forward
- A project has annual depreciation of $17,100, costs of $89,300, and sales of $129,500. The applicable tax rate is 40 percent. What is the operating cash flow? Multiple Choice $22,920 $30,960 $84,540 $34,380 $24,120arrow_forwardGet Answer please providearrow_forwardA project will reduce costs by $42,700 but increase depreciation by $21,100. What is the operating cash flow if the tax rate is 25 percent? Multiple Choice $47,850 $37,300 $32,025 $15,950 $26,500arrow_forward
- 4. A project capitalized for ₱150,000 invested in depreciable assets will earn a uniform, annual income of ₱59, 547 in 10 years. The costs for operation and maintenance total ₱27,000a year, and taxes and insurance will cost 4% of the first cost each year. If the company expects its capital to earn12% before income taxes, is the investment worthwhile? Show by: Annual cost method Solve and show the solution.arrow_forwardA project is expected to generate annual revenues of $ 119, 300, with variable costs of $75, 400, and fixed costs of $15,900. The annual depreciation is $3,950 and the tax rate is 34 percent. What is the annual operating cash flow? Multiple Choice $61, 143 $19, 823 $45, 243 $ 28,000 $31,950arrow_forwardA project is expected to generate annual revenues of $124,100, with variable costs of $77,200, and fixed costs of $17,700. The annual depreciation is $4,250 and the tax rate is 23 percent. What is the annual operating cash flow? Multiple Choice $47,878 $23,462 $33,450 $29,200 $65,578arrow_forward
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