What is the net after tax cash flow for year 4 if the applicable tax rate is 40%?a. $39,328b. $68,321c. $20,327d. $47,331What is the net present worth of the project's after-tax cash flows at 12%?a. $0b. $36,410c. $24,966d. $112,339If the company were able to sell the asset for $60,000 in year 5 instead of $50,000, what would be the new after-tax cash flow for year 5?a. $88,553b. $31,663c. $92,553d. The answer cannot be determined from the information given. Machine PurchaseProjectIncome StatementEnd of YearRevenueExpenses:LaborMaterialsOverheadDepreciationTaxable IncomeIncome Taxes (40%)Net IncomeCash FlowStatementOperating Activities:Net IncomeDepreciationInvesting Activities:Milling MachineSalvage ValueGains TaxWorking CapitalFinancing Activities:Net Cash Flow0($162,000)12$115,007 $150,001$1,857$7433$149,996$60,000 $60,000$60,000$60,000$20,000 $20,000 $20,000$20,000$10,000 $10,000 $10,000 $10,000$23,150 $39,674 $28,334$14,467$194,225$20,327 $31,662$8,131$12,6655$140,004$60,000$20,000$10,000$7,233$89,758 $42,771$35,903$17,108$1,114 $12,196 $18,997 $53,855 $25,663$50,000(343)

Name: What is the net after tax cash flow for year 4 if the applicable tax r
Uploaded: 2024-03-20T06:50:59.000Z
Channel: Bartleby
Description: What is the net after tax cash flow for year 4 if the applicable tax rate is 40%?a. $39,328b. $68,321c. $20,327d. $47,331What is the net present worth of the project's after-tax cash flows at 12%?a. $0b. $36,410c. $24,966d. $112,339If the company wer

We are given the following income statement and cash flows of a project for years 1-5:Required:1.…

Business

Finance

What is the net after tax cash flow for year 4 if the applicable tax rate is 40%? a. $39,328 b. $68,321 c. $20,327 d. $47,331 What is the net present worth of the project's after-tax cash flows at 12%? a. $0 b. $36,410 c. $24,966 d. $112,339 If the company were able to sell the asset for $60,000 in year 5 instead of $50,000, what would be the new after-tax cash flow for year 5? a. $88,553 b. $31,663 c. $92,553 d. The answer cannot be determined from the information given.

What is the net after tax cash flow for year 4 if the applicable tax rate is 40%? a. $39,328 b. $68,321 c. $20,327 d. $47,331 What is the net present worth of the project's after-tax cash flows at 12%? a. $0 b. $36,410 c. $24,966 d. $112,339 If the company were able to sell the asset for $60,000 in year 5 instead of $50,000, what would be the new after-tax cash flow for year 5? a. $88,553 b. $31,663 c. $92,553 d. The answer cannot be determined from the information given.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 8EP

See similar textbooks

Similar questions

estion 4 calculate the net income from the following information: sales $537,000; variable costs $346,800; depreciation $94,500; and tax rate is 21% Ⓒ$75,760 O $75,761 Ⓒ$75,762 $75,763
Sales Operating Income Total Assets (investment) Target Rate of Return (Cost of Capital) $1,520,437 $77,792 $500,251 12% What is return on investment? Input your answer to 1 decimal place. For example if you calculate.1892 enter 18.9.
Consider the following income statement: $ 529,192 344,288 78,300 23% Sales Costs Depreciation Taxes Calculate the EBIT. EBIT
Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 12.3% to evaluate this project. Based on extensive research, it has prepared the following incremental free cash flow projections (in millions of dollars): 1. a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? b. Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 10% higher than forecast? What is the NPV if revenues are 10% lower than forecast? c. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity of its analysis to possible growth in revenues and operating expenses. Specifically, management would…
Revenues - Cost of Goods Sold - Depreciation =EBIT - Taxes (20%) =Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow Year 0 OA. by 35% OB. by 41% OC. by 69% O D. by 55% Year 1 500,000 - 300,000 Year 2 500,000 - - 100,000 -100,000 165,000-165,000 235,000 -47,000 235,000 -47,000 Year 3 500,000 -165,000 -100,000 188,000 188,000 100,000 100,000 - 20,000 - 20,000 268,000 268,000 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. Visby learns that a competitor is thinking of offering similar services, thus reducing Visby's sales. By how much could sales fall before the net present value (NPV) was zero, given that the cost of capital is 8%, and that cost of goods sold is 45% of revenues? 235,000 - 47,000 188,000 100,000 - 20,000 268,000
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
Consider the following income statement: Sales $909,407 Costs 484,977 Depreciation 149,723 Taxes 0.28 Calculate OCF.
The following are available for divison X and Y Profit before interest and tax X 185 000 Y172 000 Capital employed X 1 540 000 Y 1 650 000 The cost of capital is 10% comment on the performance of the departments based on a. Return on capital employed b.residual income
Consider the following income statement: Sales Costs $ 602,184 391,776 Depreciation 89,100 Taxes Calculate the EBIT. EBIT 21% Calculate the net income. Net income
Sales $1,561,836 Operating Income $87,385 Total Assets (investment) $517,201 Target Rate of Return (Cost of Capital) 15% What is return on investment? Input your answer to 1 decimal place. For example if you calculate .1892 enter 18.9.
Consider the following income statement: Sales Costs Depreciation Taxes Calculate the EBIT. EBIT $748,168 486,752 110,700 Net income 23% Calculate the net income.
Use the table for the question below. Revenues -Cost of Goods Sold -Depreciation =EBIT -Taxes (30%) =Profit after tax +Depreciation -Change in NOWC -Capital Expenditures =Free Cash Flow Year 0 a. by 28.1% b. by 15.5% c. by 10.8% d. by 24.5% -300,000 Year 1 400 000 -180 000 -100 000 120 000 -36 000 84 000 100 000 -20 000 164 000 Year 2 400 000 -180 000 -100 000 120 000 -36 000 84 000 100 000 -20 000 164 000 Year 3 400 000 -180 000 -100 000 120 000 -36 000 8 000 100 000 -20 000 164 000 Visby Rides, a limousine hire 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. Visby learns that a competitor is thinking of offering similar services, thus reducing Visby's sales. By how much could sales fall before the net present value (NPV) was zero, given that the opportunity cost of capital is 10%, and that cost of goods sold is 45% of revenues?