Eton Company is analysing a proposed project. It expects to sell 150 units, give or take 4%. The expected variable cost per unit is $10 and the expected fixed cost is $400. The fixed and variable cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense and interest expense are $300 and $100 respectively. The tax rate is 10%. The sale price is estimated at $20 a unit, give or take 5%. What is the after tax cash flow under the optimistic case scenario? A. $1002.6 B. $1114.0 C. $1302.6 D. $1272.6
Eton Company is analysing a proposed project. It expects to sell 150 units, give or take 4%. The expected variable cost per unit is $10 and the expected fixed cost is $400. The fixed and variable cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense and interest expense are $300 and $100 respectively. The tax rate is 10%. The sale price is estimated at $20 a unit, give or take 5%. What is the after tax cash flow under the optimistic case scenario? A. $1002.6 B. $1114.0 C. $1302.6 D. $1272.6
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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Eton Company is analysing a proposed project. It expects to sell 150 units, give or take
4%. The expected variable cost per unit is $10 and the expected fixed cost is $400. The
fixed and variable cost estimates are considered accurate within a plus or minus 5%
range. The
The tax rate is 10%. The sale price is estimated at $20 a unit, give or take 5%. What is
the after tax cash flow under the optimistic case scenario?
A. $1002.6
B. $1114.0
C. $1302.6
D. $1272.6
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