The Netflix Corporation's cash flow from operations before interest and taxes was $5.25 milion in the year just ended, and it expects that this will grow by 6.5% per year for six years and 5.75% per year in perpetuity.  To make this happen, the firm will have to invest an amount equal to 25% of pretax cash flow each year.  The tax rate is 21%.  Depreciation was $275,000 in the year just ended and is expected to grow at the same rate as the opening cash flow.  The apropriate market capitalization rate for the unleveraged cash flow is 13.25% per year, and the firm currently has debt of $5.75 million outstanding and 4,250,000 shares outstanding.  Use the free cash flow approach to calculate the price per share.

Your firm, Agrico Products, is considering the purchase of a tractor that has a net cost of $72,000, will increase pretax operating cash flows before taking account of depreciation effects by $24,000 per year, and will be depreciated on a straight-line basis to $0 over five years at the rate of $14,400 per year, beginning the first year. (Annual cash flows will be $24,000 before taxes plus the tax savings that result from $14,400 of depreciation.) The board of directors is having a heated debate about whether the tractor actually will last five years. Specifically, Joan Lamm insists that she knows of some tractors have lasted only four years. Alan Grunewald agrees with Lamm, but he argues that most tractors do provide five years of service. Judy Maese says she has known some to last for as long as eight years. Given this discussion, the board asks you to prepare a scenario analysis to ascertain the importance of the uncertainty about the tractor’s life span. Assume a 40 percent…

Laurel's Lawn Care Limited has a new mower line that can generate revenues of $135,000 per year. Direct production costs are $45,000, and the fixed costs of maintaining the lawn mower factory are $17, 500 a year. The factory originally cost $0.90 million and is being depreciated for tax purposes over 20 years using straight-line depreciation. Calculate the operating cash flows of the project if the firm's tax bracket is 25% . Note: Enter your answer in dollars not in millions.

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project: Sales revenues $25 million Operating costs 22.5 million Interest expense 3 million The company has a 25% tax rate, and its WACC is 11%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. What is the project's operating cash flow for the first year (t = 1)? Round your answer to the nearest dollar.$     If this project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar.The firm's OCF would now be $   .